All of the following ratios measure the profitability of a company except:
A) rate of return on net sales
B) earnings per common share
C) price/earnings ratio
D) rate of return on total assets

Question

Quizplus · Accepted Answer

The price/earnings ratio is not a measure of profitability, but rather a measure of the market's expectations for a company's future earnings. The other ratios listed- rate of return on net sales, earnings per common share, and rate of return on total assets- all indicate a company's profitability.

All of the Following Ratios Measure the Profitability of a Company