The group of ratios which are focused on net income are referred to as:
A)asset utilisation ratios
B)financial leverage measures
C)liquidity ratios
D)market value ratios
E)profitability measures

Question

Quizplus · Accepted Answer

Profitability measures are ratios that focus on net income and assess the company's ability to generate profits from its operations. Examples of profitability measures include return on equity, return on assets, net profit margin, and gross profit margin.

The Group of Ratios Which Are Focused on Net Income