Which of the following is the best measure of operating efficiency?

Question

Quizplus · Accepted Answer

Return on net operating assets is the best measure of operating efficiency because it takes into account the profitability of the assets used to generate revenue. It shows how effectively a company is using its assets to produce income, which is the primary goal of operations. Return on equity and return on sales do not take into account the assets used to generate revenue, while return on inventory only measures the efficiency of managing inventory.

Which of the Following Is the Best Measure of Operating