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
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.