Which of the following ratios shows effective management and the firm's effectiveness in generating profits from the available assets?
A) times interest earned
B) net profit margin
C) return on assets
D) return on equity

Question

Quizplus · Accepted Answer

Return on assets (ROA) indicates how efficiently a company can manage its assets to produce profits during a period. It's a key performance indicator of effective management and the firm's effectiveness in generating profits from the available assets.

Which of the Following Ratios Shows Effective Management and the Firm's