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The ratio that gives the indication of the efficiency of a firm's sales with respect...

Accounts - Principles of Accounts
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
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Correct Answer: Option A
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.


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