BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is not a category of a ratio?
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Return on assets
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Profitability
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Solvability
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Liqudity
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Explanation:
Detailed explanation-1: -Financial ratios are grouped into the following categories: Liquidity ratios. Leverage ratios. Efficiency ratios.
Detailed explanation-2: -The return on total assets ratio is obtained by dividing a company’s earnings after tax by its total assets. This profitability indicator helps you determine how your company generates its earnings and how you compare to your competitors.
Detailed explanation-3: -Answer and Explanation: The correct option is (B) Inventory Turnover Ratio.
There is 1 question to complete.