What term is used to describe an indicator measuring an entity's return on investments?

The term that describes an indicator measuring an entity's return on investments is commonly referred to as a profitability ratio. This category of financial metrics evaluates the ability of a business to generate profit relative to its revenues, operating costs, or other expenses. Profitability ratios help stakeholders understand how effectively a company turns sales into profits, thus providing insight into the efficiency of its operations and overall financial health. They are crucial for comparing a business's performance over time or against its competitors.

While return on equity specifically measures the profitability relative to shareholders' equity, it is just one type of profitability ratio. Additionally, the investment index and asset utilization are not standard terms used to quantify returns on investments in the same way. Instead, they relate to broader concepts of investment performance or operational efficiency, which do not provide a direct measure of investment returns. Thus, profitability ratio is the most encompassing and accurate term to describe an indicator measuring returns on investments in general.