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______ ratios measure how much operating income an organization is able to generate relative to assets, owners' equity, and sales.

Sagot :

Baraq

According to business strategy, the Profitability ratios measure how much-operating income an organization can generate relative to assets, owners' equity, and sales.

What are Profitability ratios?

Profitability ratios s a form of financial method or procedure in which firms assess or evaluate the ability to generate income or revenue based on the capacity and resources.

Different types or methods of Profitability ratios:

  • Gross Profit Ratio
  • Operating Ratio
  • Operating Profit Ratio
  • Net Profit Ratio
  • Return on Investment

Hence, in this case, it is concluded that the correct answer is "Profitability ratio."

Learn more about the Profitability ratio here: https://brainly.com/question/25253887

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