The following ratio(s) that would probably not be used to assess the profitability of a firm is:
A)return on stockholders' equity
B)return on total assets
C)times interest earned
D)both return on stockholders' equity and return on total assets

Question

Quizplus · Accepted Answer

Times interest earned is not a ratio used to assess profitability of a firm, but rather its ability to cover interest expenses. The other ratios listed (A, B, D) are commonly used to assess a company's profitability.

The Following Ratio(s) That Would Probably Not Be Used to Assess