The correct answer is: A. earning growth
Earning growth is the percentage increase in a company’s earnings over a period of time. It is calculated by dividing the company’s earnings in the current year by its earnings in the previous year and multiplying by 100.
There are a number of factors that can affect a company’s earning growth, including:
- Revenue growth: A company’s revenue is the total amount of money it earns from its sales. If a company’s revenue grows, its earnings are likely to grow as well.
- Cost control: A company’s costs are the expenses it incurs in order to operate its business. If a company can control its costs, its earnings are likely to increase.
- Investment decisions: A company’s investment decisions can also affect its earnings. For example, if a company invests in new equipment or technology, its earnings may increase as a result.
- Tax rates: A company’s tax rate can also affect its earnings. If a company’s tax rate decreases, its earnings are likely to increase.
Return on equity (ROE) is a measure of a company’s profitability. It is calculated by dividing the company’s net income by its shareholders’ equity.
Return on assets (ROA) is a measure of a company’s efficiency. It is calculated by dividing the company’s net income by its total assets.
Return on sales (ROS) is a measure of a company’s profitability. It is calculated by dividing the company’s net income by its net sales.
Inflation is a general increase in prices and fall in the purchasing value of money. It can affect a company’s earnings in a number of ways. For example, if inflation increases, the cost of goods and services that a company purchases may increase. This can lead to higher costs for the company, which may reduce its earnings. Additionally, if inflation increases, the value of a company’s assets may decrease. This can also reduce a company’s earnings.