If a Company Has a Strong Rate of Return on Ordinary

question 65

True/False

If a company has a strong rate of return on ordinary shareholders' equity,that is an indication of good cash flow.

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Definitions:

Physical Substance

A characteristic of certain assets that possess material existence and can be seen, touched, or quantified.

Ownership

The legal right or state of having control and possession over something, such as property or a company.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in generating sales from its assets.

Net Sales

The revenue from goods or services sold after deducting returns, allowances for damaged or missing goods, and discounts.