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
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?
2 answers
ebit
1 answer