Which financial metric is commonly used to assess the profitability of a company?

Return on equity (ROE) is a key financial metric used to assess the profitability of a company because it measures how effectively a company is using shareholders' equity to generate profit. Specifically, ROE is calculated by dividing net income by shareholder equity. A higher ROE indicates that the company is more efficient at converting the equity investments into profits, which is a direct indicator of financial performance and profitability.

In contrast, other financial metrics listed are focused on different aspects of a company's financial health. The debt-to-equity ratio is primarily used to evaluate a company's financial leverage and risk, showing the proportion of debt and equity used to finance assets. The current ratio and quick ratio are both liquidity measures, assessing a company’s ability to meet short-term obligations; they do not directly indicate profitability. Thus, ROE stands out as the most relevant metric for profitability assessment, emphasizing the effectiveness of management in generating returns on investments made by shareholders.