Which of the following ratios is not considered to be a test of profitability?
A) Current ratio.
B) Profit margin.
C)Return on assets.
D)Earnings per share.

Question

Quizplus · Accepted Answer

The current ratio is a measure of liquidity and not profitability. It assesses a company's ability to meet its short-term obligations by comparing current assets to current liabilities. The other ratios listed (profit margin, return on assets, earnings per share) all directly relate to a company's profitability.

Which of the Following Ratios Is Not Considered to Be