Question

In: Finance

Which of the following ratios represent net profit from both operations and non-operations (including investment and...

Which of the following ratios represent net profit from both operations and non-operations (including investment and financing) of pharmaceutical company JKL?

Group of answer choices

EBIT

Return on net assets

Asset efficiency

DEBIT

Excess margin

Solutions

Expert Solution

The correct answer is Return on assets

The return on assets is calculated by dividing net income from net assets, The net profit includes both the operations and non operational profits. Therefore, Return on assets will represent the Net earnings that the company is going to generate over a period of time.


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