All of the following are profitability ratios except
A. Profit margin B. Payable turnover C. Asset turnover D. Return on assets
ANSWER IS "B" PAYABLE TURNOVER RATIO
The accounts payable turnover ratio is a short-term liquidity measure used to quantify the rate at which a company pays off its suppliers. Accounts payable turnover ratio is calculated by taking the total purchases made from suppliers, or cost of sales, and dividing it by the average accounts payable amount during the same period.
TOTAL SUPPLIER PURCHASE / AVERAGE ACCOUNT PAYABLES
From the given options you can also observe that profit margin ration,asset turnover ratio and return on assets are inflows to a business they are profits on our investments whereas payable ratio is a outflow
therefore payable ratio is not a profitability ratio
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