If you had $50,000 and you wanted to invest in stocks, you have two options. Which of the following ratios would best help you to decide on your investment?
A) Inventory turnover
B) Asset turnover
C) Return on assets
D) Gross profit margin
E) Net profit margin

Question

Quizplus · Accepted Answer

Return on assets is an important performance measure for a firm and its stockholders because it measures the profits that a firm makes relative to the assets it possesses.

If You Had $50,000 and You Wanted to Invest in Stocks