What is true of Profitability ratios?

These ratios are calculated to analyze the profitability position of a business. Such ratios involve analysis of profits in relation to sales or funds or capital employed. Both 1 and 2 None of the above

Both 1 and 2

Profitability Ratios: These ratios are calculated to analyse the profitability position of a business. Such ratios involve analysis of profits in relation to sales or funds or capital employed.