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Which of the following ratios is calculated using only balance sheet numbers?
| Return on sales
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Question & Answer: Which of the following ratios is calculated using only balance sheet numbers?…..
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Asset turnover Price earnings ratio Current ratio |
Expert Answer
D. Current ratio
Current ratio is calculated using only balance sheet numbers. It is calculated as:
Current ratio = Current assets / Current Liabilities
Current ratio is a liquidity ratio that measures a company’s ability to pay short-term and long-term obligations.
