Which Ratio Is Closest to the "Return on Invested Capital

question 6

Multiple Choice

Which ratio is closest to the "Return On Invested Capital (ROIC) " ratio?

• A)Operating Margin
• B)Return on Assets (ROA)
• C)Return on Capital Employed (ROCE)
• D)Net margin

---

Definitions:

Prospectively

Referring to or dealing with events in the future, often in the context of financial planning or forecasting.

Extraordinary Gain

A gain that arises from events or transactions that are distinct and infrequent in nature, not expected to recur regularly.

Provision For Inventories

An accounting practice where a reserve is made for potential decreases in the value of a company’s inventory.

Inventories Losses

Reductions in the amount or value of inventories due to factors such as deterioration, obsolescence, or theft, resulting in financial loss.