Which financial ratio is always the same whether computed using local currency balances or translated balances?

Question

Quizplus · Accepted Answer

The gross margin percentage is calculated by dividing the gross margin by sales. Since both the numerator (gross margin) and the denominator (sales) are affected by currency translation in the same proportion, the ratio remains unchanged regardless of the currency used. This is because the effect of currency translation on the top and bottom of the ratio cancels out, leaving the gross margin percentage constant.

Which Financial Ratio Is Always the Same Whether Computed Using