The type of ratio that allows the analyst to measure the ability of the firm to earn an adequate return on sales, total assets, and invested capital is:
A)liquidity ratios.
B)profitability ratios.
C)asset-utilization ratios.
D)debt-utilization ratios.
E)price ratios.

Question

Quizplus · Accepted Answer

The profitability ratios allow the analyst to measure the ability of the firm to earn an adequate return on sales, total assets, and invested capital.

The Type of Ratio That Allows the Analyst to Measure