Which of the Following Best Describes the Use of Profitability

Multiple Choice

Which of the following best describes the use of profitability ratios?

A) It shows the relative amount of funds in the business supplied by creditors and shareholders.
B) It indicates a company's ability to pay short-term debts.
C) It indicates management's ability to generate a financial return on sales or investment.
D) It shows the profit margins for the last six months.
E) It indicates the future profits from the current customer basE.