Which of the following ratios measures the return the firm earned on its owner's investment in the firm?

A) times interest earned
B) net profit margin
C) return on assets
D) return on equity

Return on Equity

A financial ratio representing the amount of net income returned as a percentage of shareholders equity, demonstrating a company's efficiency in generating profits.

Owner's Investment

The initial amount of money or assets an owner contributes to start or support the business.

Firm

Another term for a business or company, often used in legal contexts.