Home › Bihar Board Class 12 (Commerce) › Accountancy › Analysis of Financial Statements: Tools and Accounting Ratios › Which group of ratios analyses the earning capac…
Which group of ratios analyses the earning capacity of the business?
AProfitability ratios
BLiquidity ratios
CSolvency ratios
DActivity ratios
Answer & Solution
Correct answer: A. Profitability ratios
Profitability ratios assess how well resources are turned into profit.
Related questions
DuPont analysis multiplies several ratios to give which measure?Which 1934 book by Graham and Dodd is central to fundamental analysis?What makes ratios hard to compare across countries?Ratios are of limited use unless they are what?Which ratio type measures investor response to owning a company's stock?The P/E ratio mainly reflects what?Market price Rs. 96 and EPS Rs. 8. What is the price earning ratio?Dividend per share is Rs. 3 and EPS is Rs. 12. What is the dividend payout ratio?