The ratio of net profit to invested capital is known as:
A)return on invested capital.
B)return on sales.
C)capital turnover.
D)cost of goods sold.
E)sales, general, and administrative expenses.

Question

The ratio of net profit to invested capital is known as:
A)return on invested capital.
B)return on sales.
C)capital turnover.
D)cost of goods sold. 
E)sales, general, and administrative expenses.

Quizplus · Accepted Answer

The ratio of net profit to invested capital is known as return on invested capital (ROIC). It is a measure of how efficiently a company is using its capital to generate profits.

The Ratio of Net Profit to Invested Capital Is Known