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

Question

Quizplus · Accepted Answer

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It is not a measure of profitability, unlike the net profit margin, return on assets, and earnings per share, which are all indicators of a company's financial performance and profitability.

Which of the Following Ratios Usually Is Not Considered to Be