Asked by

Jordan Scrivens
on Dec 02, 2024

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Which of the following ratios would probably not be used to assess the profitability of a firm?

A) Return on stockholders' equity
B) Return on total assets
C) Times interest earned
D) a and c only

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its operating income.

Return on Stockholders' Equity

A measure of the profitability of a corporation in relation to the equity held by its shareholders, calculated as net income divided by shareholder equity.

Return on Total Assets

A measure of a company's profitability, indicating how effectively it uses its assets to generate earnings.

  • Assess the liquidity and profitability of a firm using ratio analysis.
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Marlyn QuinteroDec 02, 2024
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