Which of the following ratios measures the profitability of the money invested in the firm's assets?
A)Quick Ratio
B)Return on Owners' Equity
C)Gross Margin Ratio
D)Return on Investment

Question

Quizplus · Accepted Answer

Return on Investment (ROI) measures the profitability of the money invested in the firm's assets. It is a ratio of net income to total assets. The other ratios listed do not directly measure profitability of invested money in the firm's assets; Quick Ratio measures liquidity, Return on Owners' Equity measures profitability for equity holders, and Gross Margin Ratio measures profitability for each unit of sales.

Which of the Following Ratios Measures the Profitability of the Money