_____ indicate management's ability to generate a financial return on sales or investment.
A) Liquidity ratios
B) Leverage ratios
C) Net working capital ratios
D) Profitability ratios
E) Current ratios

Question

Quizplus · Accepted Answer

Profitability ratios measure a company's ability to generate a financial return on sales or investment. Examples of profitability ratios include return on assets, return on equity, gross profit margin, and net profit margin.

_____ Indicate Management's Ability to Generate a Financial Return on Sales