Profitability ratios give an indication of how investors feel about the company's financial future.

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Leslie Cervantes · Accepted Answer

Final Answer : False, Explanation :  Profitability ratios measure a company's ability to generate earnings relative to its revenue, assets, or equity, not directly how investors feel about its financial future. Investor sentiment is more closely reflected in market-based metrics like stock price movements and valuation ratios.

Profitability ratios give an indication of how investors feel about the company's financial future.

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