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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


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 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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