Which measure evaluates a company's overall ability to generate profit from its investments?

The measure that evaluates a company's overall ability to generate profit from its investments is return on assets (ROA). ROA is calculated by dividing net income by total assets, and it indicates how efficiently a company is using its assets to produce earnings. A higher ROA signifies more effective management of assets in generating profit, reflecting the company's operational efficiency and profitability in relation to its investments.

Other measures listed serve different purposes. Gross margin assesses the difference between sales and the cost of goods sold, highlighting operational efficiency but not taking into account other expenses that impact profitability. The current ratio measures a company's ability to cover its short-term liabilities with its short-term assets, offering insights into liquidity rather than profitability. The debt ratio evaluates the proportion of a company's assets that are financed through debt, focusing on financial leverage rather than profitability. Each of these measures provides valuable insights, but return on assets specifically indicates how well a company generates profit from its investments, making it the most relevant choice for this question.