determine how well the firm is using its assets and sales revenue to generate a positive return for its owners.
A)Leverage ratios
B)Market ratios
C)Liquidity ratios
D)Profitability ratios
E)Activity ratios

Question

Quizplus · Accepted Answer

Profitability ratios measure how well a firm is using its assets and sales revenue to generate a positive return for its owners. These ratios include measures such as return on assets, return on equity, gross profit margin, and net profit margin.

Determine How Well the Firm Is Using Its Assets and Sales