Profitability ratios give an indication of how investors feel about the company's financial future.

Name: Profitability ratios give an indication of how investors feel about the company's financial future.
Brand: Quizplus
Rating: 4.9 (55 reviews)

Question

Quizplus · Accepted Answer

Profitability ratios measure a company's ability to generate earnings relative to its revenue, assets, or equity, not directly how investors feel about its financial future. Investor sentiment is more closely reflected in market-based metrics like stock price movements and valuation ratios.

Profitability Ratios Give an Indication of How Investors Feel About