JAMB - Accounts Principles Of Accounts (2016 - No. 6)

The ratio that gives the indication of the efficiency of a firm's sales with respect to cost of goods sold is a
return on capital employed
gross profit margin
net profit margin
return on equity

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.

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