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Which of the following ratios is used to assess a company's profitability?

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Question: Which of the following ratios is used to assess a company\'s profitability?

Options:

  1. Current Ratio
  2. Quick Ratio
  3. Return on Equity
  4. Debt Ratio

Correct Answer: Return on Equity

Solution:

Return on Equity (ROE) is a key profitability ratio that measures the amount of net income returned as a percentage of shareholders\' equity.

Which of the following ratios is used to assess a company's profitability?

Practice Questions

Q1
Which of the following ratios is used to assess a company's profitability?
  1. Current Ratio
  2. Quick Ratio
  3. Return on Equity
  4. Debt Ratio

Questions & Step-by-Step Solutions

Which of the following ratios is used to assess a company's profitability?
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