Profitability ratios include _____.
A) return on sales
B) days' sales in inventory
C) the quick ratio
D) the debt-to-equity ratio

Question

Quizplus · Accepted Answer

Profitability ratios are meant to measure a company's ability to generate profits. Return on sales is a profitability ratio that shows how much profit a company is able to generate based on their sales. The other options listed (B, C, and D) are all liquidity ratios, not profitability ratios.

Profitability Ratios Include _____