The correct answer is: A. Net profit ratio
A net profit ratio is a measure of profitability that shows how much profit a company makes in relation to its revenue. A high net profit ratio indicates that a company is very profitable, while a low net profit ratio indicates that a company is not very profitable.
A rate of return on investment (ROI) is a measure of profitability that shows how much profit a company makes in relation to its investment. A high ROI indicates that a company is very profitable, while a low ROI indicates that a company is not very profitable.
An operating ratio is a measure of efficiency that shows how much a company spends on its operations in relation to its revenue. A high operating ratio indicates that a company is not very efficient, while a low operating ratio indicates that a company is very efficient.
A stock turnover ratio is a measure of liquidity that shows how quickly a company sells its inventory. A high stock turnover ratio indicates that a company has a lot of inventory that is selling quickly, while a low stock turnover ratio indicates that a company has a little inventory that is not selling very quickly.
In conclusion, the correct answer is: A. Net profit ratio. A high net profit ratio indicates that a company is very profitable, while a low net profit ratio indicates that a company is not very profitable.