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

Question

Quizplus · Accepted Answer

Return on invested capital (ROIC) is a useful measure of a company's financial performance as it measures how effectively a company is using its invested capital to generate profits. ROIC is calculated by dividing the company's net operating profit after taxes (NOPAT) by its invested capital. It is a useful tool for investors to compare the performance of different companies in the same industry. Net profit margin, share value, net sales, and productivity are all important measures of financial performance, but ROIC is more comprehensive in evaluating a company's profitability and efficiency.

One of the Most Widely Used Measures of Financial Performance