The gross profit percentage is an indicator of how well a company is positioned to pay off its short-term liabilities.

Question

Quizplus · Accepted Answer

The gross profit percentage is a measure of profitability and does not indicate a company's ability to pay off its short-term liabilities. Other financial ratios like the current ratio or quick ratio are better indicators of a company's liquidity and ability to meet short-term obligations.

The Gross Profit Percentage Is an Indicator of How Well