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      Question

      Which of the following is NOT a common profitability

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

      Solution

      Debt-to-equity ratio is not a common profitability ratio. It is a leverage ratio that measures the amount of debt financing used by a company relative to its equity financing.

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