In Appraising a Firm's Profit Performance

Multiple Choice

In appraising a firm's profit performance:

A) Return on sales is a better indicator than return on invested capital
B) Return on capital employed is a better indicator than return on sales
C) Net margin is a better indicator than operating margin
D) Narrow measures of profit (such as after-tax net income) are better indicators than broad-based measures (such as EBITDA-earnings before interest,tax,depreciation and amortization) .