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Which accounting ratio indicates how effectively a company is using its assets to generate earnings?

Practice Questions

1 question
Q1
Which accounting ratio indicates how effectively a company is using its assets to generate earnings?
  1. Debt to equity ratio
  2. Return on assets (ROA)
  3. Current ratio
  4. Quick ratio

Questions & Step-by-step Solutions

1 item
Q
Q: Which accounting ratio indicates how effectively a company is using its assets to generate earnings?
Solution: Return on assets (ROA) shows how effectively a company is using its assets to generate earnings.
Steps: 0

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