which of the following can investors use to evaluate a company’s potential earning power?\nearnings per…

which of the following can investors use to evaluate a company’s potential earning power?\nearnings per share\ndebt to owner’s equity ratio\ncurrent ratio\nasset to liabilities ratio

which of the following can investors use to evaluate a company’s potential earning power?\nearnings per share\ndebt to owner’s equity ratio\ncurrent ratio\nasset to liabilities ratio

Answer

Brief Explanations:

Earnings per share (EPS) shows the portion of a company's profit allocated to each outstanding share of common stock, directly reflecting a company's potential earning power for shareholders. The debt - to - owner's equity ratio measures financial leverage, the current ratio assesses short - term liquidity, and the asset - to - liabilities ratio is related to solvency.

Answer:

Earnings per share