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

Question

Quizplus · Accepted Answer

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.

Most Financial Ratios Are Formed from Sets of Financial Statement