Rich wants to measure the profitability of his business.Which of the following pairs of ratios would you recommend for this?
A) return on owners' equity and debt-to-equity
B) current ratio and acid-test ratio
C) return on sales and sales turnover
D) inventory turnover and earnings per share
E) earnings per share and return on sales

Question

Quizplus · Accepted Answer

Earnings per share and return on sales are both profitability ratios that help measure how effectively a company is generating profit relative to its sales and shares.

Rich Wants to Measure the Profitability of His Business