We can separate cash return on assets into:
A)Cash flow to sales and return on assets.
B)Cash flow to sales and asset turnover.
C)Cash flow to sales and profit margin.

Question

Quizplus · Accepted Answer

Cash flow to sales measures the percentage of sales that result in cash inflows, while asset turnover measures how efficiently the assets are used to generate sales. Therefore, the combination of these two measures accurately reflects the cash return on assets. Profit margin is not directly related to cash flows and does not consider the efficiency of asset usage.

We Can Separate Cash Return on Assets Into