Which of the Following Is Not a Profitability Ratio

question 100

Multiple Choice

Which of the following is not a profitability ratio?

• A)Inventory turnover
• B)Gross margin percentage
• C)Earnings per share
• D)Return on total assets

Appreciate the complexities involved in securing financing and navigating financial institutions.

Grasp the concept of self-liquidating and installment loans and their applications for businesses.

Identify the risks and costs associated with different types of financing.

Understand the importance of equity investments and personal assets in securing financing.

---

Definitions:

Cash Payback Period

The time it takes for an investment to generate cash flow sufficient to recover its initial cost.

Net Income

The total profit of a company after all expenses, including taxes and operating expenses, have been subtracted from total revenue.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment by calculating the present value of expected cash flows minus the initial investment cost.

Average Rate of Return

A metric used to evaluate the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.