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  3. profitability ratios reflect the net result of all

Profitability ratios reflect the net result of all the firm's -Select- ...

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Finance

Profitability ratios reflect the net result of all the firm's
-Select-
policies and operating decisions. The profitability ratios include the: (1) Operating margin, (2) Profit margin, (3) Return on total assets (ROA),(4) Basic earning power (BEP),(5) Return on invested capital (ROIC), and (6) Return on common equity (ROE).
The operating margin indicates what percentage of sales remain after
-Select-
are accounted for. It is a measure of the firm's operating efficiency. Its equation is:

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