Which of the following is not a profitability ratio? - ProProfs Discuss
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Which of the following is not a profitability ratio?

A. Price/earnings ratio.

B. Return on assets.

C. Gross margin.

D. Operating profit margin.

This question is part of mabstac4
Asked by Mablair_assoc, Last updated: Sep 22, 2020

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mablair_assoc

mablair_assoc

mablair_assoc
Mablair_assoc

Answered Mar 29, 2019

A: Price/earnings ratio.

A. Answer A is correct. The price/earnings ratio is a market ratio. It is calculated by dividing the price of a share of stock by earnings per share. B. Answer B is incorrect. Return on assets is a profitability ratio. C. Answer C is incorrect. Gross margin is a profitability ratio. D. Answer D is incorrect. Operating profit margin is a profitability ratio.
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