Which of the following ratios is not a profitability ratio?
Which of the following ratios is not a profitability ratio?
Solution
✅ Correct Option: 2
Operating Profit Ratio, EPS and Return on Investment are all profitability ratios measuring the earning performance of the business. Proprietary Ratio (Proprietors' Funds / Total Assets) is a solvency ratio indicating long-term financial stability, not profitability.
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