The ratio of net profit to total owners' equity is called return on:
A)sales
B)earnings
C)equity
D)margin
E)inventory

Name: The ratio of net profit to total owners' equity is called return on: A)sales B)earnings C)equity D)margin E)inventory
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Question

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The ratio of net profit to total owners' equity is called return on equity (ROE). This financial ratio indicates how well a company uses the investments from its shareholders to generate profits.

The Ratio of Net Profit to Total Owners' Equity Is