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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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