Which of the following ratios gives information on the amount of profits reinvested in the firm over the years?
A)Sales/total assets
B)Debt/total assets
C)Debt/equity
D)Retained earnings/total assets Only retained earnings reflect profits reinvested over the years.

Question

Quizplus · Accepted Answer

Only retained earnings reflect profits that have been reinvested in the firm over the years. The other ratios do not provide information specific to profits reinvested.

Which of the Following Ratios Gives Information on the Amount