_____ are profitability ratios.
A)Gross profit rate and return on sales
B)Dividend payout and rate of return in invested capital
C)Earnings per share and dividend yield
D)Price earnings and current ratio

Question

Quizplus · Accepted Answer

Gross profit rate and return on sales are both ratios that measure a company's profitability. Gross profit rate is calculated by dividing gross profit by net sales, while return on sales is calculated by dividing net income by net sales. Dividend payout and rate of return in invested capital are examples of investment ratios. Earnings per share and dividend yield are examples of investor ratios. Price earnings and current ratio are examples of liquidity ratios.

_____ Are Profitability Ratios