17 17 of 20 1000 points TB 1367 The analysis of a firms prof

17· 17 (of 20) 10.00 points TB 13-67 The analysis of a firm\'s profitability includes al.. The analysis of a firm\'s profitability Includes all of the following except, O Price/Earnings ratio O Recelvables turnover. O Fixed asset turnover O Asset turnover. References TB 13-67 The analysis of a firm\'s proftablity Includes al... Learning Objective: 13-04 Calculate Financlal Ratios to

Solution

The analysis of a firm\'s profitability includes all of the following except:

A Price/Earnings ratio

B Receivables turnover

C Fixed Asset turnover

D Asset turnover

The answer is A. This is just the ratio of a firm\'s stock price on the market and gives no indication of the firm\'s efficiency.