Asked by Taven Lange on May 07, 2024
Verified
Most financial ratios are formed from sets of financial statement figures. Which of the following ratios are not?
A) Cost ratio
B) Current ratio
C) P/E ratio
D) Market/book ratio
E) Both c and d
Financial Ratios
Quantitative measures derived from financial statement analysis used by investors and analysts to evaluate a company's financial health and performance.
P/E Ratio
The price-to-earnings (P/E) ratio is a valuation measure comparing the current share price of a company to its per-share earnings.
Market/Book Ratio
A financial ratio comparing a company's current market price to its book value, used to evaluate whether a stock is over or undervalued.
- Comprehend the importance of financial ratios in analyzing a company's operational efficiency and fiscal stability.
Verified Answer
Learning Objectives
- Comprehend the importance of financial ratios in analyzing a company's operational efficiency and fiscal stability.
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