Which of the following is considered a profitability ratio?
A)Earnings per share
B)Debt-to-equity ratio
C)Acid-test ratio
D)Inventory turnover ratio

Question

Quizplus · Accepted Answer

Profitability ratios are used to assess a company's ability to generate earnings in relation to its expenses and other costs. Earnings per share (EPS) is a profitability ratio that measures how much profit a company generates for each share of its outstanding stock. It is calculated by dividing the company's net income by the number of outstanding shares.

Which of the Following Is Considered a Profitability Ratio