Which of the following ratios would not be affected by the choice of depreciation methods?
A) Working capital turnover
B) Earnings per share of common stock
C) Debt to equity
D) Price-earnings ratio

Question

Quizplus · Accepted Answer

Working capital turnover is calculated using current assets and current liabilities, which are not affected by the choice of depreciation methods. Depreciation affects non-current assets and, consequently, metrics related to profitability and asset valuation, but not the working capital turnover ratio.

Which of the Following Ratios Would Not Be Affected by the Choice