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easyMCQCUET Accountancy 2025 16 May Shift 12026CUET Accountancy
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Which of the following is NOT classified as a Profitability Ratio?

  1. A
    Price Earning Ratio
  2. B
    Proprietary Ratio
  3. C
    Earnings Per Share
  4. D
    Operating Ratio

Solution & Step-by-step Explanation

Ratios are grouped into broad categories:Profitability Ratios: Evaluate performance metrics (e.g., Operating Ratio, EPS, Price-Earnings Ratio, Gross Profit Ratio).Solvency Ratios: Assess long-term financial viability and obligations management. The Proprietary Ratio is a classic Solvency Ratio expressing the relationship of proprietor’s funds to total assets.

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Which of the following is NOT classified as a Profitability Ratio?
A
Price Earning Ratio
B
Proprietary Ratio
C
Earnings Per Share
D
Operating Ratio

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