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).