Which of the following ratios is included as an integral part of the strategic profit model?
A) Retained earnings
B) Net profit margin
C) Net profit
D) Current liabilities
E) All of these

Question

Quizplus · Accepted Answer

The strategic profit model includes the following components: net profit margin, asset turnover, and financial leverage. The ratio of net profit margin is included as an integral part of this model. Retained earnings and current liabilities are not ratios, and net profit alone does not provide enough information to form a complete picture of a company's financial performance.

Which of the Following Ratios Is Included as an Integral