The ratio of net profit to invested capital is known as:
A) return on invested capital.
B) return on sales.
C) capital turnover.
D) cost of goods sold.
E) sales, general, and administrative expenses.

Question

Quizplus · Accepted Answer

The ratio of net profit to invested capital is known as return on invested capital (ROIC), which is a measure of how much profit a company is generating from the capital it has invested.

The Ratio of Net Profit to Invested Capital Is Known