If a company has rapidly growing earnings per share, their return on net operating assets must be increasing too.

Question

Quizplus · Accepted Answer

Rapidly growing earnings per share (EPS) does not necessarily mean that the return on net operating assets (RNOA) is increasing. EPS growth can be influenced by factors such as share buybacks, financial leverage, or other non-operational activities that do not affect RNOA, which focuses on operational efficiency and profitability.

If a Company Has Rapidly Growing Earnings Per Share, Their