The EPS ratio is important because it signals the ability of the company to pay future dividends,which investors factor into the stock price.

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The EPS ratio is a common financial ratio used by investors to assess a company's profitability and potential for growth. A higher EPS ratio indicates that a company is generating more earnings per share, which could translate into higher dividends and a greater ability to fund future growth. As a result, investors often pay close attention to a company's EPS ratio when deciding whether to buy or sell its stock.

The EPS Ratio Is Important Because It Signals the Ability