Which of the following measures does not reflect a company's profitability?
Gross Profit Margin

Days Sales in Accounts Receivable

О ЕВАТ

Profit Margin

Respuesta :

Answer:

Days Sales in Accounts Receivable

Explanation:

The profitability ratios check the profit of the company. It could be determined by gross profit margin - EBAT and profit margin

The gross profit margin could be

= (Sales - cost of goods sold) ÷ (Sales)

The EBIAT is Earning before interest after taxes it tracks the performance of the company and according to that the profitability could be measured

The profit margin could be calculated

= Net profit ÷ Sales

Therefore the days sales in account receivable is not reflect the company profitability