Peak Performance Sporting Goods Company competes with several other firms in the retail industry for important visibility and retail space in large stores.The company's chief financial officer knows that in order to attract investors,the company must demonstrate growth,and its management must outperform the competition.The CFO continuously watches __________________ because these are key to measuring growth.
A)activity ratios
B)profitability ratios
C)leverage ratios
D)liquidity ratios

Question

Quizplus · Accepted Answer

Profitability ratios are key to measuring a company's growth as they indicate how well the company is generating profit relative to its revenue, assets, or equity, which is crucial for attracting investors.

Peak Performance Sporting Goods Company Competes with Several Other Firms