Would the following ratios be useful in measuring the profitability of a firm Ratio 1: Cash plus short-term marketable investments plus receivables divided by average daily cash expenditures. Ratio 2: Earnings before interest and taxes divided by average total assets. Ratio 1Ratio 2（）①A. No No ②B. Yes Yes ③C. No Yes
A. ①
B. ②
C. ③
参考答案：C
解析：
(Cash + short - term marketable investments + receivables ) divided by average daily cash expenditures is known as the defensive interval ratio. The defensive interval ratio is a liquidity ratio that measures the firm’ s ability to pay cash expenditures in the absence of external cash flows, but does not directly measure profitability. EBIT/average total assets is one variation of the return on assets ratio. Return on assets is a profitability ratio that measures the efficiency of managing assets and generating profits.
