The correct answer is: A. return ratios.
Return ratios are a type of financial ratio that measures the profitability of a company. They are calculated by dividing a company’s net income by its assets, equity, or sales. Return ratios can be used to compare the profitability of different companies or to track a company’s profitability over time.
There are many different types of return ratios, but some of the most common include:
- Return on assets (ROA): This ratio measures how profitable a company is for each dollar of assets it owns. It is calculated by dividing net income by total assets.
- Return on equity (ROE): This ratio measures how profitable a company is for each dollar of equity it owns. It is calculated by dividing net income by total equity.
- Return on sales (ROS): This ratio measures how profitable a company is for each dollar of sales it generates. It is calculated by dividing net income by total sales.
Return ratios are an important tool for investors and analysts. They can be used to identify companies that are likely to be profitable in the future. They can also be used to compare the
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