Increasing earnings quality could be indicated bya. an improving operating earnings/sales ratio.b. a declining operating expenses/sales ratio.c. an improving gross margin/sales ratio.d. all of the above.

Increasing earnings quality could be indicated bya. an improving operating earnings/sales ratio.b. a declining operating expenses/sales ratio.c. an improving gross margin/sales ratio.d. all of the above.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 6Q: Explain the difference between NOPAT and net income. Which is a better measure of the performance of...

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Question

Increasing earnings quality could be indicated by
a. an improving operating earnings/sales ratio.
b. a declining operating expenses/sales ratio.
c. an improving gross margin/sales ratio.
d. all of the above.

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