The ratio that gives the indication of the efficiency of a firm's sales with respect...
FINANCIAL
JAMB 2016
The ratio that gives the indication of the efficiency of a firm's sales with respect to cost of goods sold is a
- A. return on capital employed
- B. gross profit margin
- C. net profit margin
- D. return on equity
Correct Answer: A. return on capital employed
Explanation
Return on capital employed or ROCE is a profitability ratio that measures how efficiently a company can generate profits from its capital employed by comparing net operating profit to capital employed.
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *