Which of the following is a profitability ratio?
A) return on assets
B) earnings per share
C) price to earnings
D) dividend yield

Question

Quizplus · Accepted Answer

Return on assets is a profitability ratio that measures a company's ability to generate profits from its total assets. It is calculated by dividing net income by total assets. The other options, B) earnings per share, C) price to earnings, and D) dividend yield, are all valuation ratios and not profitability ratios.

Which of the Following Is a Profitability Ratio