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Home Questions DCUYHVEKU3
Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Accounting Ratios

Question:

Which of the following is not a profitability ratio?

Options:

Price Earning Ratio

Proprietory Ratio

Earning per share

Operating Ratio

Correct Answer:

Proprietory Ratio

Explanation:

The correct answer is option 2- Proprietory Ratio.

Proprietory Ratio is a solvency ratio.

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.

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