A common measure of profitability is the

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Return on common stockholders' equity is a measure of how effectively a company is using its shareholders' investments to generate profits. It indicates the amount of profit generated per dollar of common shareholder equity. This measure is a key indicator of a company's profitability, and it is widely used by investors and analysts to evaluate a company's financial performance. The other options listed are measures of liquidity (current ratio), debt risk (debt to assets), and debt coverage (times interest earned). While these are important financial metrics to consider, they do not provide insight into a company's profitability.

A Common Measure of Profitability Is the