Which of the Following Is Not a Profitability Ratio

question 136

Multiple Choice

Which of the following is not a profitability ratio?

• A)Return on equity (ROE).
• B)Earnings per share.
• C)Asset turnover.
• D)Days to sell.

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Definitions:

Treasury Stock

Shares that were issued by a company and have been repurchased from the market, but not retired.

Stockholders' Equity

The owners' claim on the company's assets, calculated as the company's total assets minus its total liabilities; also known as shareholders' equity.

Assets

Resources owned or controlled by a business, providing future economic benefits.

Additional Paid-in Capital

The amount of money shareholders have invested in the company above the nominal value of the shares.