One of the most widely used measures of financial performance is
A) return on invested capital (ROIC).
B) net profit margin.
C) share value.
D) net sales.
E) productivity.

Question

Quizplus · Accepted Answer

ROIC measures how much profit a company generates for each dollar invested in the business. It provides a good indication of the overall performance of a company and its ability to generate returns for its investors. Net profit margin, share value, net sales, and productivity are all important measures, but they do not provide the same comprehensive view of financial performance as ROIC.

One of the Most Widely Used Measures of Financial Performance