Which of the Following Is Not a Profitability Ratio

question 1

Multiple Choice

Which of the following is not a profitability ratio?

• A) Return on equity
• B) Asset turnover
• C) Return on assets
• D) Quick ratio

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Definitions:

Investment

The allocation of resources, usually money, into assets or projects expected to generate future profits or income.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with an organization's goal of maximizing owner value.

Quantitative Techniques

Mathematical and statistical methods used in decision-making, often to analyze and interpret data to solve complex problems.

Cost of Capital

The essential yield a firm must generate from its investment activities to preserve its market value and secure financing.