I'm a beginner to accounting. I'm confused because I'm looking at a specific stock on Yahoo Finance, and it says the P/E ratio is negative, and the EPS is also negative.
However, the company is actually producing cash? On the Income Statement, it has a Gross Profit of over 1 billion (gross, meaning after factoring in Cost of Revenue), and over 5 billion of Total Shareholder's Equity on its balance sheet.
How then is the EPS and P/E ratio negative? Where does “Earnings” in EPS come from?
Is it coming from EBITDA, which is negative?
Leave a Reply