Select the correct statement from the following:

A) Profit margin reflects a company's ability to produce net sales from total assets.
B) Total asset turnover reflects the percent of net income in each dollar of net sales.
C) Return on total assets can be separated into the gross margin ratio and debt ratio.
D) A high return on total assets is desirable.
E) Analysis of return on total assets is not beneficial in evaluating profitability.

Total Asset Turnover

A financial benchmark that quantifies how resourcefully a company employs its assets to achieve sales revenue.

Profit Margin

A financial ratio indicating the percentage of revenue that exceeds the costs associated with making or buying the goods sold.

Gross Margin Ratio

A financial metric showing the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a company’s core operations.