________ measures the overall effectiveness of management in generating profits with its available assets.
A) Total asset turnover
B) Price/earnings ratio
C) Return on equity
D) Return on total assets

Question

Quizplus · Accepted Answer

Return on total assets (ROTA) measures how efficiently a company is using its assets to generate profits. It is calculated by dividing net income by total assets. ROTA provides insight into how well management is utilizing the company's assets to generate a return for shareholders.

________ Measures the Overall Effectiveness of Management in Generating Profits