Grand Stores, Inc.is concerned about its profitability for the current year, since its profit margin has dropped 10% since last year.Which of the following is the least useful comparison in evaluating the drop in Grand Stores' profit margin?

Question

Quizplus · Accepted Answer

The current ratio, which is a comparison of current assets to current liabilities, is not directly related to profit margin and therefore is not useful in evaluating the drop in Grand Stores' profit margin. The other choices are all more useful comparisons in evaluating the drop in profit margin.