Which of the following is not considered an adequate measure by itself of corporate performance?
A) ROI
B) EPS
C) ROE
D) operating cash flow
E) all of the above

Question

Quizplus · Accepted Answer

None of the listed measures should be used as the sole measure of corporate performance. Each measure has its own limitations and should be used in combination with other measures to provide a more comprehensive analysis of a company's performance. For example, ROI does not measure the amount of capital invested, making it difficult to compare different companies, and EPS can be manipulated through accounting practices such as share buybacks. ROE can also be affected by capital structure and debt levels, while operating cash flow does not account for capital expenditures.

Which of the Following Is Not Considered an Adequate Measure