Which of the following ratios is NOT used to measure the profitability of a company?
A)Rate of return on net sales
B)Rate of return on total assets
C)Price/earnings ratio
D)Rate of return on common stockholders' equity

Question

Quizplus · Accepted Answer

The price/earnings ratio is actually a measure of the company's valuation, specifically the market price of the stock relative to the earnings per share. It does not directly measure profitability, unlike the other ratios listed.

Which of the Following Ratios Is NOT Used to Measure