A common measure of profitability is the
A) return on common shareholders' equity ratio.
B) current ratio.
C) debt to total assets ratio.
D) cash current debt coverage ratio.

Question

Quizplus · Accepted Answer

The return on common shareholders' equity ratio measures the amount of net income earned for each dollar invested by common shareholders. This is a good indicator of profitability as it shows how effectively a company is using its equity to generate profits.

A Common Measure of Profitability Is the