Which of the following measures would assist in assessing the profitability of a company?
A)Earnings per share
B)Times interest earned ratio
C)Inventory turnover ratio
D)Debt-to-assets ratio

Question

Quizplus · Accepted Answer

Profitability ratios relate to the company's performance in the current period,in particular,the company's ability to generate income.Earnings per share is a profitability ratio.The times interest earned and debt-to-assets ratios are solvency ratios.Inventory turnover is a liquidity ratio.

Which of the Following Measures Would Assist in Assessing the Profitability