Which financial ratio measures a company’s profitability by comparing net income to its average total assets?a) Return on Equity (ROE)b) Gross Profit Marginc) Return on Assets (ROA)d) Debt-to-Equity Ratio

Which financial ratio measures a company’s profitability by comparing net income to its average total assets?a) Return on Equity (ROE)b) Gross Profit Marginc) Return on Assets (ROA)d) Debt-to-Equity Ratio

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 34MCQ: Which of the following ratios is used to measure a firms profitability? a. Liabilities Ă· Equity c....

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Question

Which financial ratio measures a company’s profitability by comparing net income to its average total assets?
a) Return on Equity (ROE)
b) Gross Profit Margin
c) Return on Assets (ROA)
d) Debt-to-Equity Ratio

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