Which "bottom line" ratio best measures how well a company's management has put the company's assets to work to produce a profit?
A) Return on equity
B) Return on assets
C) Net profit margin
D) Gross profit margin

Question

Quizplus · Accepted Answer

Return on assets (ROA) measures how efficiently a company's management is using its assets to generate profit. It is calculated by dividing the company's net income by its total assets, providing insight into the effectiveness of the company in converting the money it invests in assets into net income.

Which "Bottom Line" Ratio Best Measures How Well a Company's