Which of the following is the best method of determining whether the financial performance between competitors is sustainable?
A)Linking operating drivers directly to return on capital.
B)Comparing the respective ROE and ROA measures.
C)Breaking ROE down into ROIC,tax,interest rate,and leverage effects.
D)Distinguishing between pretax ROIC and the operating-cash tax rate.

Question

Quizplus · Accepted Answer

Linking operating drivers directly to return on capital helps assess the sustainability of financial performance by understanding the fundamental factors driving returns.

Which of the Following Is the Best Method of Determining