Which of the following is true?
A) ROA is always greater than or equal to ROE
B) an increase in the asset turnover ratio implies a decrease in the asset intensity ratio
C) a and b
D) none of the above

Question

Quizplus · Accepted Answer

An increase in the asset turnover ratio, which measures how efficiently a company uses its assets to generate sales, implies a decrease in the asset intensity ratio, which measures the amount of assets needed to generate sales.

Which of the Following Is True