📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    Which of the following ratios measures a company's

    profitability?
    A Debt-to-equity ratio Correct Answer Incorrect Answer
    B Current ratio Correct Answer Incorrect Answer
    C Return on equity Correct Answer Incorrect Answer
    D Gross margin ratio Correct Answer Incorrect Answer

    Solution

    Return on equity (ROE) is a financial ratio used in accounting to measure a company's profitability relative to the amount of equity invested by shareholders. It is calculated by dividing a company's net income by its shareholder's equity.

    Practice Next
    More Accounts Questions
    ask-question