Which of the following is NOT a profitability ratio?

The liquid ratio is a measure of a company's ability to pay off its short-term liabilities with its short-term assets. It focuses on liquidity rather than profitability, assessing the financial health of a business in terms of its capacity to meet immediate obligations.

In contrast, profitability ratios like the gross profit margin, net profit margin, and return on investment all measure a company's ability to generate profit relative to revenue, assets, or equity over a specific period. The gross profit margin looks at the percentage of revenue that exceeds the cost of goods sold, the net profit margin provides insight into how much profit is left after all expenses are accounted for, and return on investment gauges the effectiveness of an investment in generating profit.

Therefore, identifying the liquid ratio as the option that does not belong among the profitability ratios highlights the distinction between measures of a company's ability to sustain and generate income versus those used to analyze its short-term financial stability.