Which combination of ratios will best analyze Stetson's income statement performance?
A)Earnings per share,gross profit,and profit margin ratio
B)Gross profit ratio,return on common stockholders' equity ratio,debt-to-equity ratio
C)Debt-to-equity ratio,gross profit ratio,and profit margin ratio
D)Current ratio,gross profit ratio,and return on common stockholders' equity ratio

Question

Quizplus · Accepted Answer

Earnings per share, gross profit, and profit margin ratio are directly related to analyzing the performance of a company's income statement. These ratios focus on profitability and efficiency, which are key aspects of income statement analysis.

Which Combination of Ratios Will Best Analyze Stetson's Income Statement