Accounting · Financial Ratios

Which of the following quantitative methods measures a borrower's efficiency in generating net profits relative to its total assets?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Quick Ratio
2Inventory Turnover Ratio
3Debt-to-Assets Ratio
4Return on Assets (ROA)✓

Correct answer

Return on Assets (ROA)

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Which of the following quantitative methods measures a borrower's efficiency in generating net profits relative to its total assets?

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Which of the following quantitative methods measures a borrower's efficiency in generating net profits relative to its total assets?

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