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

Question

Quizplus · Accepted Answer

Both management and external users employ profitability ratios to assess a company's success in generating profits and how these profits are used to reward investors.The average days to collect receivables ratio is a liquidity ratio.It assesses a company's collection record.

You Are Considering an Investment in Frontier Airlines Stock and Wish