Which of the following ratios measures the earnings of a company on each sales dollar?

A) Return on assets
B) Return on sales
C) Return on inventory
D) Return on stockholders' equity

Return on Sales

A financial ratio that calculates how efficiently a company is at generating operating profit from its revenue.

Return on Assets

Return on Assets (ROA) is a financial ratio that measures the profitability of a company relative to its total assets, indicating how efficient a company is at using its assets to generate profits.

Return on Inventory

A financial metric used to assess how effectively a company generates profits from its inventory investments.