s is for - online puzzles

Online puzzle s is for

P / S ratio (market price / net revenue from sales) - the quotient of the market share price and the company's sales value per share. This indicator informs investors how much you have to pay for one zloty of the company's sales value. Strategic investors who intend to take over a given company often pay attention to it. This is due to the fact that they usually have a significant market share of the company (proportional to the value of sales) and the price they have to pay for this share. In this case, the profitability of the business is of secondary importance for the investor, because he can still make changes in the company, aiming at its improvement. This ratio varies depending on the industry in which profitability can be different and is used to compare the valuation of companies, despite differences in accounting principles. It is used because of a very important advantage, because it is possible to interpret even in the case of unprofitable, being in a bad economic and financial situation of the company (as opposed to e.g. P / E), and in the longer term it can even better inform about the P / E ratio about value of the analyzed company. The sales value is not affected by as many events and volumes as in the case of profit.