Which of the Following Best Describes What a Profitability Ratio

Multiple Choice

Which of the following best describes what a profitability ratio is?

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.