BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
This measure the capacity to earn sufficient return on sales, total assets and owner’s investment.
A
Liquidity
B
Asset Utilization
C
Debt Utilization
D
Profitability
Explanation: 

Detailed explanation-1: -ROE is a key ratio for shareholders as it measures a company’s ability to earn a return on its equity investments.

Detailed explanation-2: -Return on total assets ratio definition The return on total assets ratio compares a company’s total assets with its earnings after tax and interest. The return on total assets ratio is a key ratio used to assess your company’s profitability.

Detailed explanation-3: -The return on shareholders’ equity ratio shows how much money is returned to the owners as a percentage of the money they have invested or retained in the company. It is one of five calculations used to measure profitability.

Detailed explanation-4: -Return on Equity: ROE is most often used to evaluate business profitability from a shareholder perspective. The ratio shows how much shareholders are earning.

Detailed explanation-5: -A net profit margin ratio calculates the amount of profit a business can extract from its total revenue stream. To calculate, divide net income by net sales, then multiply that number by 100 to create a ratio.

There is 1 question to complete.