Final answer:
Calculating a P/E ratio with negative earnings is not useful as it produces a negative result, offering no valuable insight for investors; other financial measures are preferred in this scenario.
Step-by-step explanation:
Computing a P/E ratio (Price-to-Earnings ratio) when earnings are negative is not typically useful because the ratio is intended to measure the price of a stock relative to its earnings. With negative earnings, the P/E ratio would also be negative, which doesn't provide meaningful insight into the value or performance of a company's stock for investors. Instead, alternative metrics might be considered that can better represent the financial health or potential growth of companies with negative earnings, such as sales growth rates, EBITDA, or cash flow analysis.