You are considering an investment in Freedom Airlines stock and wish to assess the firm's earnings performance.All of the following ratios can be used to assess profitability except:
A)Net margin.
B)Average days to collect receivables.
C)Return on investment.
D)Asset turnover.

Question

Quizplus · Accepted Answer

Average days to collect receivables is a ratio used to assess the effectiveness of the company's credit and collection policies, and is not directly related to profitability. Net margin, return on investment, and asset turnover are all commonly used ratios to assess a company's profitability.

You Are Considering an Investment in Freedom Airlines Stock and Wish