The lack of Goodwill on a company's financial statements indicates poor earnings potential.

Name: The lack of Goodwill on a company's financial statements indicates poor earnings potential.
Brand: Quizplus
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Quizplus · Accepted Answer

Goodwill on a company's financial statements primarily represents the premium paid over the fair market value of the assets in an acquisition, not directly the company's earnings potential. Lack of goodwill could simply mean the company hasn't made acquisitions valued above the target's book value.

The Lack of Goodwill on a Company's Financial Statements Indicates