Which financial metric provides a measure of the efficiency of a company's use of its assets in generating profit?
- ROI ( return on investment)
- ROA ( return on assets)
- ROE ( return on equity)
- IRR ( internal rate of return)
Explanation
The financial metric that measures the efficiency of a company's use is ROI
ROI stands for Return on Investment
formula:
ROI = (Net Income / Initial Investment) * 100
Related MCQs
- 1/5
- 1/6
- 1/7
- None of these
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- 5/6
- 5/7
- 5/8
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- 1/2
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- 4/15
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- Favorable Outcomes ÷ Total Outcomes
- Total Outcomes ÷ Favorable Outcomes
- Favorable Outcomes × Total Outcomes
- None of these
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