n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following ratios indicates the profitability of a company?

Practice question from NISM XXI A for PMS - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Current Ratio

  2. Return on Equity (ROE)

    Correct answer

  3. C

    Debt-Equity Ratio

  4. D

    Price-to-Earnings Ratio

Why this is the answer

ROE measures the return generated on shareholders' equity.

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