menu
Sign up

The Return on Invested Capital (Roic)differs from the Return on Assets

Question 34
True False

The return on invested capital (ROIC)differs from the return on assets (ROA).First,ROIC is based on total invested capital rather than total assets.Second,the numerator of the ROIC is after-tax operating income rather than net income.

Related questions
Q 35
Market value ratios provide management with an indication of how investors view the firm's past performance and especially its future prospects.
Q 36
In general,if investors regard a company as being relatively risky and/or having relatively poor growth prospects,then it will have relatively high P/E and M/B ratios.
Q 37
The price/earnings (P/E)ratio tells us how much investors are willing to pay for a dollar of current earnings.In general,investors regard companies with higher P/E ratios as being less risky and/or more likely to enjoy higher growth in the future.
logo
© 2020 QuizPlus. All Right Reserved