A measure of performance that tells a firm whether they are doing as well as their competitors in generating income from sales is called ______.Multiple choice question.earnings per sharethe current ratioreturn on salesreturn on equity
Question
A measure of performance that tells a firm whether they are doing as well as their competitors in generating income from sales is called ______.Multiple choice question.earnings per sharethe current ratioreturn on salesreturn on equity
Solution
The answer is "return on sales". This measure, also known as operating profit margin, is a profitability ratio that measures the percentage of profit a company produces from its operations, before subtracting taxes and interest charges. It is compared to the company's total revenue, effectively showing how much profit is made per dollar of sales. This can be used to compare a company's performance with its competitors.
Similar Questions
The three profitability performance ratios are ______.Multiple select question.earnings per shareinventory turnoverreturn on equitycurrent ratioreturn on sales
Multiple Choice QuestionA corporation's earnings divided by the number of outstanding shares of a firm's common stock is called Blank______.Multiple choice question.benchmark ratioG.E. ratioprice-earnings ratioearnings per share
Multiple Choice QuestionWhat type of ratios measure how effectively a firm is using its various resources to achieve profits?Multiple choice question.ProfitabilityLiquidityLeverageActivity
What are three profitability ratios?Multiple select question.return on salesacid-testbasic earnings per sharecurrent ratioreturn on equity
Multiple Choice Question______ ratios measure how much operating income an organization is able to generate relative to assets, owners' equity, and sales.Multiple choice question.ProfitabilityAsset utilizationLiquidityDebt utilization
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.