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
jamb 2016accounting

The correct answer is A. return on capital employed

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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