Which of the following ratios is not a measure of profitability?
A)rate of return on assets
B)rate of return on common stockholders' equity
C)earnings per share of common stock
D)rate of return on preferred stockholders' equity
E)all of the above

Question

Quizplus · Accepted Answer

The rate of return on preferred stockholders' equity is not typically considered a measure of profitability. Profitability ratios usually focus on the company's earnings relative to its assets, equity, or sales, and are primarily concerned with the returns generated for common stockholders, not preferred stockholders.

Which of the Following Ratios Is Not a Measure of Profitability