Question : Which type of ratio states EBIT/Total assets?
Option 1: Liquidity ratio
Option 2: Return on total assets ratio
Option 3: Solvency ratio
Option 4: Turnover ratio
Answer (1)
6th Jan, 2024
Correct Answer: Return on total assets ratio
Solution :
The return on total assets (ROTA) ratio compares a company's earnings before interest and taxes (EBIT) to total net assets.
Hence option 2 is the correct answer.
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