Which of the following ratios gives information on the amount of profits reinvested in the firm over the years?

Question

Quizplus · Accepted Answer

Retained earnings/total assets gives information on the portion of profits that have been reinvested in the firm over time. It shows the amount of earnings that have been retained and reinvested into the company to generate future growth, rather than distributed to shareholders as dividends.

Which of the Following Ratios Gives Information on the Amount