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Ratios that measure the value of a company's stock are_______

a)liquidity ratios
b)leverage ratios
c)asset management ratios
d)market ratios

User Jim Foye
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1 Answer

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Final answer:

Market ratios are the metrics that assess the value of a company's stock, distinguishing them from liquidity, leverage, and asset management ratios.

Step-by-step explanation:

The ratios that measure the value of a company's stock are known as market ratios. These ratios typically include the price-to-earnings (P/E) ratio, market-to-book ratio, and earnings per share (EPS), among others. Market ratios are essential for investors as they help to assess whether a stock is overvalued or undervalued in the market.

Market ratios differ from other types of financial ratios such as liquidity ratios (which measure a company's ability to meet short-term obligations), leverage ratios (which assess the level of debt in comparison to equity or assets), and asset management ratios (which evaluate how efficiently a company utilizes its assets).

User Ijverig
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