Which of the following is not a profitability ratio?
A) Payout ratio
B) Profit margin
C) Times interest earned
D) Return on common stockholders' equity

Name: Which of the following is not a profitability ratio? A) Payout ratio B) Profit margin C) Times interest earned D) Return on common stockholders' equity
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Question

Quizplus · Accepted Answer

Times interest earned is a measure of a company's ability to meet its interest payments, not a direct measure of profitability. It is considered a solvency ratio rather than a profitability ratio.

Which of the Following Is Not a Profitability Ratio