Which ratio is considered to be the primary measure of overall profitability as it assesses how effectively the business has used its funds?
A)Return on ordinary shareholders' funds
B)Gross profit margin
C)Return on capital employed
D)Operating profit margin

Question

Quizplus · Accepted Answer

Return on capital employed (ROCE) is considered to be the primary measure of overall profitability as it assesses how effectively the business has used its funds to generate profits. It measures the return generated from the capital employed in the business, including both equity and debt. ROCE is a key indicator of how well a company is utilizing its assets to generate profits.

Which Ratio Is Considered to Be the Primary Measure of Overall