Which of the following is not an example of a profitability ratio?
A) Current ratio
B) Gross profit margin
C) Return on assets
D) Profit margin

Question

Quizplus · Accepted Answer

The current ratio is a liquidity ratio, not a profitability ratio. Profitability ratios focus on a company's ability to generate earnings and profits from its operations, while liquidity ratios focus on a company's ability to meet short-term financial obligations. Gross profit margin, return on assets, and profit margin are all examples of profitability ratios.

Which of the Following Is Not an Example of a Profitability