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Assume that all you have available are data for the following ratios and your firm and your industry. a. Total Asset Turnover = Revenues/Assets b.
Assume that all you have available are data for the following ratios and your firm and your industry.
a. Total Asset Turnover = Revenues/Assets
b. Total Margin = EBIT/Revenues
c. Net Profit Margin = Earnings/Revenues
d. Times Interest Earned = EBIT/Interest
e. Return on Equity = Earnings/Equity
If you want evaluate the effectiveness of your company's operating managers and you can only use one of the measures, which one should it be and why?
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