Asked by
Maxwell Pinto
on Nov 06, 2024
Verified
Return on assets and return on equity are examples of _____.
A) asset utilization ratios
B) liquidity ratios
C) debt ratios
D) profitability ratios
E) current ratios
Profitability Ratios
Ratios that measure the amount of operating income or net income an organization is able to generate relative to its assets, owners’ equity, and sales.
Return On Equity
Net income divided by owners’ equity; also called return on investment (ROI).
- Pinpointing and measuring fundamental financial ratios and their significance.
Verified Answer
MC
Learning Objectives
- Pinpointing and measuring fundamental financial ratios and their significance.