What is and is not a profitability ratio?
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Which of the follow is not a profitability ratio? Questions are located in the attached file. Please explain as well.
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The response discusses Profitability ratio.
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A financial ratio shows the relationship between two or more financial figures. This also helps in comparing the performance of the organization and used in the control of the organization. Different users of financial ratios may (bankers, investors, the company) interpret financial ratios in different manner.
Profitability ratios indicates efficiency of the organization.
For example Net profit margin indicates the overall efficiency of the organization. ...
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