Which ratio measures the rate earned on a company's total economic resources?
A)Price-earnings ratio
B)Earnings per share
C)Return on total assets
D)Return on common stockholders' equity

Question

Quizplus · Accepted Answer

Return on total assets (ROTA) measures the rate earned on a company's total economic resources. It is calculated by dividing the company's net income by its total assets. ROTA is a key profitability ratio that shows how efficiently a company is using its assets to generate profits.

Which Ratio Measures the Rate Earned on a Company's Total