Ratios that measure how efficiently a firm's management uses its assets and equity to generate bottom line net income are known as _____ ratios.
A) Asset management
B) Long-term solvency
C) Short-term solvency
D) Profitability
E) Market value

Question

Quizplus · Accepted Answer

Profitability ratios measure how efficiently a firm's management uses its assets and equity to generate bottom line net income. These ratios typically assess the company's ability to generate earnings relative to its revenue, operating costs, assets, and shareholders' equity.

Ratios That Measure How Efficiently a Firm's Management Uses Its