Which of the following measures how effectively the company uses its capital to generate revenues and is calculated by taking revenues and dividing it by invested capital?
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

Capital turnover measures how effectively a company uses its capital to generate revenues by dividing revenues by invested capital.

Which of the Following Measures How Effectively the Company Uses