The ratio of sales to invested assets, which is also a factor in the DuPont formula for determining the return on investment, is called
A) profit margin
B) indirect margin
C) investment turnover
D) cost ratio

Question

Quizplus · Accepted Answer

The ratio of sales to invested assets is called investment turnover, as it measures how efficiently a company is using its assets to generate sales revenue. Profit margin is the ratio of net income to sales, while indirect margin and cost ratio are not commonly used financial ratios in the DuPont formula or in financial analysis in general.

The Ratio of Sales to Invested Assets, Which Is Also