Three firms in the same industry show the following ratios for the most recent year after all proper adjustments have been made for dilutive securities and differences in financial reporting standards :
Earnings per Share | Sales per Share | Operating Cash Flow per Share | |
Company X | $ 1.50 | $ 2.50 | $ 1.00 |
Company Y | $ 3.50 | $ 1.00 | $ 2.00 |
Company Z | $ 2.00 | $1.50 | $ 3.00 |
A. is Company X because it has the greatest sales per share.
B. is Company Y because it has the highest earnings per share.
C. cannot be deten’nined because per-share ratios are not comparable.
参考答案:C
解析:
When stated on a per-share basis, different companies’ financial data cannot be compared meaningfully because these ratios depend on the number of shares outstanding, which is unrelated to the companies’ operating performance or profitability. A company with a $ 200 share price should have much higher valuation measures than a company with a $ 2 share price.