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) Gross profit margin
B) Asset turnover
C) Return on assets
D) Inventory turnover
E) Net profit margin

Question

Quizplus · Accepted Answer

Return on assets is effective in evaluating the profitability of individual investments in assets because it can be easily compared with yields of other investments of similar risks.

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