The ratio of net profit to total owners' equity is called which of the following?
A) return on inventory
B) return on earnings
C) return on equity
D) return on sales

Question

Quizplus · Accepted Answer

The ratio of net profit to total owners' equity is called return on equity (ROE). It measures the profits generated from the amount of money invested by the owners of the business. It is a key metric for evaluating the performance of a company and its ability to generate returns for its shareholders.

The Ratio of Net Profit to Total Owners' Equity Is