The ________ measures the overall effectiveness of management in generating profits with its available assets.
A) net profit margin
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 uses its total assets to generate profit. This ratio provides insight into how well management is utilizing its resources to generate profits for the company. The higher the ROTA, the better the company is at using its assets to create profits.

The ________ Measures the Overall Effectiveness of Management in Generating