Please refer to Table 4-3 for the following questions.
Table 4-3
Emery Corporation
Balance Sheet Income Statement

-Which of the following financial ratios is the best measure of the operating effectiveness of a firm's management?
A) times interest earned
B) net profit margin
C) operating return on assets
D) operating efficiency quotient

Question

Please refer to Table 4-3 for the following questions.
Table 4-3
Emery Corporation
Balance Sheet Income Statement
 
-Which of the following financial ratios is the best measure of the operating effectiveness of a firm's management?
A) times interest earned 
B) net profit margin 
C) operating return on assets 
D) operating efficiency quotient

Quizplus · Accepted Answer

Operating return on assets (OROA) measures a firm's operating income as a percentage of its total assets. This ratio provides insights into how effectively management is using the company's assets to generate operating income. A higher OROA indicates better operating effectiveness of a firm's management.

Please Refer to Table 4-3 for the Following Questions