The price-to-sales ratio is probably most useful for firms in which phase of the industry life cycle?

Question

Quizplus · Accepted Answer

The price-to-sales ratio is useful for start-up companies as they may not have consistent earnings or profits yet. This ratio helps investors understand the company's revenue-generating potential and its ability to grow its top line. For mature companies, other ratios like the P/E ratio may be more useful as they have established earnings histories.

The Price-To-Sales Ratio Is Probably Most Useful for Firms in Which