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

Question

Quizplus · Accepted Answer

Current ratio measures the ability of a company to pay its short-term liabilities with its short-term assets. It is a liquidity ratio and not a profitability ratio. The other options listed are all commonly used ratios to measure profitability.

Which of the Following Ratios Usually Is Not Considered to Be