If you had $50,000 and you wanted to invest in either a restaurant or in Loblaws stock, which of the following ratios would best help you to decide what to do?
A) Asset turnover
B) Return on assets
C) Gross profit margin
D) Net profit margin
E) Inventory turnover

Question

Quizplus · Accepted Answer

Return on assets (ROA) would help you determine how efficiently each option is using its assets to generate profit, which is crucial for comparing investment opportunities.

If You Had $50,000 and You Wanted to Invest in Either