The ratio of profits to owner investment in a business is called

Question

Quizplus · Accepted Answer

The ratio of profits to owner investment is commonly known as return on equity (ROE). This is a financial measure that indicates how efficiently a company is using its resources and how profitable it is for its shareholders. Return on assets (ROA) measures how efficiently a company is using its assets to generate profits. Return on sales (ROS) measures the profitability of the company's sales. Return on inventory is not a commonly used financial measure.

The Ratio of Profits to Owner Investment in a Business