Question
Which of the following ratio is derived from the Balance
sheet of the company?  A.   Debt Equity Ratio B.   Quick Ratio C.  Stock turnover ratio D.  Expense ratioÂSolution
Debt Equity ratio (long term debt/Shareholder equity) and Quick Ratio (current assets- Inventory /current liabilities) are calculated from Balance Sheet. While Stock turnover ratio (COGS/average stock) and expense ratio (operating expenses/net sales) is calculated from the P&L statement.
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