Match the classifications of ratios with each description.
-Measures the earning ability of a company
A)Liquidity Ratio
B)Leverage Ratio
C)Profitability Ratio
D)Horizontal Analysis
E)Trend Analysis

Question

Quizplus · Accepted Answer

Profitability ratios measure how effectively a company is generating earnings or profits. Examples of profitability ratios include return on equity (ROE), return on assets (ROA), and gross profit margin.

Match the Classifications of Ratios with Each Description