The best accounting-based measure of a firm's profitability is
A)gross profit margin
B)net profit margin
C)return on fixed assets
D)return on total assets

Name: The best accounting-based measure of a firm's profitability is A)gross profit margin B)net profit margin C)return on fixed assets D)return on total assets
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Question

Quizplus · Accepted Answer

Return on total assets (ROTA) is considered the best accounting-based measure of a firm's profitability as it indicates how efficiently a company is using its assets to generate earnings.

The Best Accounting-Based Measure of a Firm's Profitability Is