Answer:
D. Profitability Ratios
Step-by-step explanation:
A profitability ratios are class of ratios that are used by investors, share holders and other stake holders of the company to access the business ability to generate profits and returns relative to its revenue, expenses and other associated costs.
Most common Profitability ratios are
- Gross profit margin
- Operating profit margin
- Net Profit margin.
whereas:
Leverage ratio shows the company's debt level.
Asset management ratio tells how well the company is utilizing its assets to generate sale.
Liquidity ratios shows how much liquid assets or the company position to pay off its current liabilities falling due.