Which of the ratios listed helps to indicate the efficiency with which the resources of the company are being utilised to generate profit?
A) current ratio
B) profit margin
C) quick ratio
D) return on assets.

Question

Quizplus · Accepted Answer

Return on assets (ROA) measures how efficiently a company uses its assets to generate profit, indicating resource utilization efficiency.

Which of the Ratios Listed Helps to Indicate the Efficiency