Homework Help: finance (efficiency of management)

Posted by Jason on Friday, July 25, 2008 at 2:11pm.

The best indication of the operational efficiency of management is?

A. net income
B. earnings per share
C. EBIT
D. gross profit

I like net income as a metric for operational efficiency because net income is how much money the company has after to paid all the bills and taxes...

A is my FINAL ANSWER

I that correct?

finance (efficiency of management) - Ms. Sue, Friday, July 25, 2008 at 4:29pm
I don't think net income is a good indication of operational efficiency. It doesn't take into account that a large company will have a higher net income than a small company.

What about EBIT?

http://www.investopedia.com/terms/e/ebit.asp
finance (efficiency of management) - 1, Thursday, August 30, 2012 at 5:23am
-1'
finance (efficiency of management) - 1, Thursday, August 30, 2012 at 5:23am
1
finance (efficiency of management) - -1', Thursday, August 30, 2012 at 5:23am
1
-1' - 1, Thursday, August 30, 2012 at 5:23am
1

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