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.

Practice Next

Relevant for Exams:

×
×