Which ratio was primarily designed to monitor firms with negative earnings?
A)Price-sales ratio
B)Market-to-book ratio
C)Profit margin
D)ROE
E)ROA

Name: Which ratio was primarily designed to monitor firms with negative earnings? A)Price-sales ratio B)Market-to-book ratio C)Profit margin D)ROE E)ROA
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Question

Quizplus · Accepted Answer

The price-sales ratio is used to evaluate companies with negative earnings because it focuses on sales rather than profits, which can be negative.

Which Ratio Was Primarily Designed to Monitor Firms with Negative