Measures of profitability for a firm engaging in operations selling merchandise in its stores to generate net income do not include:
A)rate of return on assets.
B)rate of return on common shareholders' equity.
C)earnings per share of common stock.
D)inventory turnover ratio.
E)none of the above.

Question

Quizplus · Accepted Answer

The inventory turnover ratio is a measure of a firm's efficiency in managing its inventory, but it is not a measure of profitability. The other options are all measures of profitability for a firm selling merchandise in its stores.

Measures of Profitability for a Firm Engaging in Operations Selling