Key financial ratios that could help analysts measure Whole Foods' profitability do not include
A)operating profit margin.
B)return on capital employed.
C)net return on assets.
D)inventory turnover.
E)return on stockholders' equity.

Question

Quizplus · Accepted Answer

Inventory turnover is a measure of how efficiently a company manages its inventory rather than a direct measure of profitability. It indicates how many times a company has sold and replaced inventory over a period. In contrast, the other ratios (operating profit margin, return on capital employed, net return on assets, and return on stockholders' equity) are directly related to assessing a company's profitability.

Key Financial Ratios That Could Help Analysts Measure Whole Foods