Which one of the following summary indicators is the most used?
A)Return on investment
B)Earnings per share
C)Debt-to-equity ratio
D)Current ratio

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is the most commonly used summary indicator because it shows how much profit a company has generated per share of stock outstanding. It is often used by investors and analysts to evaluate a company's profitability and growth potential. Return on investment (ROI) is also widely used but it varies by industry and company, making it less comparable across different companies. Debt-to-equity ratio and current ratio are both important indicators of a company's financial health, but they are not as commonly used as EPS or ROI.

Which One of the Following Summary Indicators Is the Most