Which of the following is NOT a profitability measure that is used to compare companies of different sizes?
A) earnings per share
B) rate of return on common stockholders' equity
C) price/earnings ratio
D) outstanding common stock ratio

Question

Quizplus · Accepted Answer

Outstanding common stock ratio is not a profitability measure but a solvency measure that shows the proportion of a company's common stock that is held by investors. The other options (earnings per share, rate of return on common stockholders' equity, and price/earnings ratio) are all profitability measures that can be used to compare companies of different sizes.

Which of the Following Is NOT a Profitability Measure That