One of the most widely used measures of financial performance in an internal analysis is:
A) return on invested capital.
B) net profit margin.
C) share value.
D) net sales.
E) productivity.

Question

Quizplus · Accepted Answer

Return on invested capital (ROIC) is a widely used measure of financial performance in an internal analysis because it allows a company to assess how much profit it is generating from the capital it has invested. By comparing the company's ROIC to its cost of capital, managers can determine whether the business is creating value for shareholders.

One of the Most Widely Used Measures of Financial Performance