as reported by Saylor Academy (2012), analysts, shareholders, suppliers and other stakeholders often want to evaluate profit trends within a company and compare a companys profits with competitors profits. Which of the five common ratios would you use to evaluate a companys profitability? Pick one. Please explain and cite your response.

1. Gross margin ratio
2. Profit margin ratio
3. Return on assets
4. Return on common shareholders equity
5. Earnings per share