A common measure of profitability is the
A) current ratio.
B) times interest earned.
C) return on common stockholders' equity.
D) debt to assets.

Question

Quizplus · Accepted Answer

Return on common stockholders' equity is a measure of the profit earned by a company for each dollar of investment made by common stockholders. It is an important measure of profitability as it shows the effectiveness of the company’s management in generating profit for its investors.

A Common Measure of Profitability Is the