Match each statement to the item listed below.
-measure the return the company is earning on sales

Question

Quizplus · Accepted Answer

Profitability ratios are financial metrics used to assess a business's ability to generate earnings relative to its revenue, operating costs, balance sheet assets, or shareholders' equity over time, providing insight into the company's financial health and performance. Measuring the return a company is earning on sales directly relates to assessing its profitability, which is why profitability ratios are the correct match.

Match Each Statement to the Item Listed Below