The net profit to asset ratio measures ________.
A)the owner's rate of return on investment
B)how much profit a company generates for each dollar of assets that it owns
C)a company's profit per dollar of sales
D)a company's ability to generate sales in relation to its asset base

Question

Quizplus · Accepted Answer

The net profit to asset ratio measures how much profit a company generates for each dollar of assets that it owns. It is calculated by dividing net profit by total assets. This ratio indicates how efficiently a company is deploying its assets to generate profits.

The Net Profit to Asset Ratio Measures ________