Answered

Welcome to Westonci.ca, the place where your questions find answers from a community of knowledgeable experts. Our platform provides a seamless experience for finding reliable answers from a knowledgeable network of professionals. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

Profitability ratios measure how well a firm uses its assets.

A. True
B. False

Sagot :

GinnyAnswer

Final answer:

Profitability ratios assess a firm's profit generation from assets, with key metrics like ROA and ROE.


Explanation:

Profitability ratios are financial metrics used to evaluate a company's ability to generate profits from its operations and assets. These ratios measure how well a firm utilizes its assets to generate profit. Return on assets (ROA) and return on equity (ROE) are two common profitability ratios used to assess a company's financial performance. Analyzing profitability ratios is crucial for investors, lenders, and company management to assess the financial health and performance of a business.


Learn more about Profitability Ratios here:

https://brainly.com/question/36647716


Thank you for choosing our service. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.