Which of the following is not considered to be a profitability ratio?

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Which of the following is not considered to be a profitability ratio?

1) profit margin

2) times interest earned

3) return on equity

4) return on assets (investment)

2 Answers

  • 2

    Source(s): accounting student
  • Liquidity, debt mgt and profitability ratios are important. Liquidy is how common is it to transform ingredients to money, Debt ratio how plenty does the organisation owe vs. ingredients, debt mgt is how nicely do they cope with their debt i.e., align their debt units with the scale of an funding in capital (brief-term vs. long-term), and profitability can provide money pass to pay expenses.

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