Which Ratio Was Primarily Designed to Monitor Firms with Negative

question 58

Multiple Choice

Which ratio was primarily designed to monitor firms with negative earnings?

• A)Price-sales ratio
• B)Market-to-book ratio
• C)Profit margin
• D)ROE
• E)ROA

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Definitions:

Units

In business or manufacturing, units refer to the individual pieces or quantities produced or sold.

Net Operating Income

A measure of a company's profitability from its core business operations, excluding deductions for interest and taxes.

Planning Budget

A financial plan that estimates the revenue and expenses for a future period, typically created to guide a business in achieving its financial goals and objectives.

Wells Serviced

Wells Serviced refers to the number of oil, gas, or water wells that have undergone maintenance, repair, or installation services within a given timeframe.