When evaluating the performance of a service company, financial analysts would likely use all of the following ratios except:
A)profit margin.
B)operating cash flow to net income.
C)gross profit.
D)accounts receivable turnover.

Question

Quizplus · Accepted Answer

While all of the ratios listed are commonly used in evaluating a company's performance, gross profit is not as significant as the other ratios because it doesn't take into account other expenses such as operating costs and taxes.

When Evaluating the Performance of a Service Company, Financial Analysts