Asked by Taven Lange on May 07, 2024

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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.
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EN
Ethan NobesMay 09, 2024
Final Answer :
E
Explanation :
The P/E (Price/Earnings) ratio and the Market/Book ratio are derived from market values and financial statement figures, not solely from financial statement figures. The P/E ratio uses market price per share and earnings per share, while the Market/Book ratio compares a company's market value to its book value, incorporating market valuation.