One of the most important performance ratios is what?
A)GAAP
B)P/E
C)P and L
D)EPS

Question

Quizplus · Accepted Answer

EPS (Earnings per share) is one of the most important performance ratios as it indicates the profitability of a company on a per-share basis. It is calculated by dividing the net income of a company by the number of outstanding shares. This ratio allows investors to compare the earnings of different companies on an equal basis and make more informed investment decisions. GAAP (Generally Accepted Accounting Principles), P/E (Price to Earnings ratio), and P and L (Profit and Loss statement) are important financial concepts, but they are not performance ratios.

One of the Most Important Performance Ratios Is What