Which of the measures below is used to assess profitability?
A)Current ratio
B)Debt-to-assets ratio
C)Asset turnover
D)Receivables turnover

Question

Quizplus · Accepted Answer

The asset turnover ratio is a profitability measure that helps to gauge the efficiency of assets in generating net sales revenue.It is calculated as: Net Sales Revenue ÷ Average Total Assets.Receivables turnover and the current ratio are used to measure liquidity,and the debt-to-assets ratio is a solvency ratio.

Which of the Measures Below Is Used to Assess Profitability