Every company analyses its earning capacity of the business which is the outcome of the utilisation of resources employed in the business. To analyse profitability company can use:

A. Dividend Payout Ratio
B. Return on Net Worth
C. Gross Profit Ratio
D. Quick Ratio
E. Inventory Turnover Ratio

Choose the choose answer from the option given below.

A, B and C only

The correct answer is option 3- A, B and C only.

Profitability ratios delve into a company's capacity to generate earnings based on the utilization of its resources. Prominent profitability ratios include the Gross Profit ratio, Operating ratio, Net Profit Ratio, Return on Investment (ROI) or Capital Employed, Earnings per Share (EPS), Book Value per Share, Dividend per Share, and Price/Earnings (P/E) ratio.

* Quick ratio is liquidity ratio which is used to measure short term solvency of the company.
* Inventory turnover ratio is a activity ratio which measures the efficiency of the company.