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Alice loves to share information that she has learned from school with her parents. She comes home one day and, at dinner, tells her family she has learned about cell differentiation in science class. The information she tells them is correct, so over dinner, she tells them that once cells differentiate, _____.
Net Profit/Pretax Profit Ratio
A financial metric that compares the net profitability of a business to its earnings before taxes, indicating the portion of income retained after accounting for all expenses.
Leverage Ratio
A financial ratio that measures the amount of debt used in a company's financing structure relative to its equity or other assets.
Pretax Profit/EBIT
Earnings before interest and taxes, a measure of a company's profitability that excludes interest and income tax expenses.
Asset Turnover Ratio
A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue.
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