The ________ ratios are primarily designed to measure the operational returns and financial yield performance of an enterprise.
- ALiquidity
- BActivity
- CDebt
- DProfitability
Solution & Step-by-step Explanation
Financial ratios are classified by their analytical focus:Liquidity Ratios measure short-term cash availability and payment capacity.Activity Ratios measure operational asset efficiency and turnover speed.Debt/Solvency Ratios analyze long-term capital leverage.Profitability Ratios (such as Gross Profit Ratio, Net Profit Ratio, and ROI) measure a company's ability to generate earnings and financial returns relative to its sales, assets, or equity.