Earnings per share is widely used in evaluating the operating performance and profitability of a company and is the only ratio required to be disclosed on the statement or in the notes to the financial statements.

Question

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Earnings per share (EPS) is a widely used measure for evaluating a company's profitability and is required to be disclosed on the statement or in the notes to the financial statements, as per the Generally Accepted Accounting Principles (GAAP). While there are other important ratios that can also provide insights into a company's financial performance, EPS remains a key metric for investors and analysts. Therefore, the statement "Earnings per share is the only ratio required to be disclosed on the statement or in the notes to the financial statements" is true.

Earnings Per Share Is Widely Used in Evaluating the Operating