Profitability ratio and solvency ratio


Problem : For each of the ratios listed below, indicate by the appropriate code letter, whether it is a liquidity ratio, a profitability ratio, or a solvency ratio.

Code:

L = Liquidity ratio
P = Profitability ratio
S = Solvency ratio

1. Price-earnings ratio

2. Free cash flow

3. Debt to total assets ratio

4. Earnings per share

5. Current ratio

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Finance Basics: Profitability ratio and solvency ratio
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