Which of the following is not a profitability ratio?
Answer & explanation
Correct answer: option 2
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.