The correct answer is: D. Earnings per share
Earnings per share (EPS) is a measure of a company’s profitability. It is calculated by dividing the company’s net income by the number of outstanding shares. EPS is a widely used metric for comparing the performance of different companies.
Solvency ratio is a measure of a company’s ability to repay its debts. It is calculated by dividing the company’s current assets by its current liabilities. A high solvency ratio indicates that the company is able to meet its short-term obligations.
Overall profitability ratio is a measure of a company’s overall profitability. It is calculated by dividing the company’s net income by its total revenue. A high overall profitability ratio indicates that the company is generating a lot of profit from its sales.
Financial position ratio is a measure of
a company’s financial health. It is calculated by dividing the company’s assets by its liabilities. A high financial position ratio indicates that the company has a lot of assets relative to its liabilities.In the given question, the ratio of preference shares dividend and ratio of net profit after tax and total number of equity shares is a measure of the company’s profitability. Therefore, the correct answer is earnings per share (EPS).