Which of the following is the ratio not derived from the net worth statement

Correct option is A

The net worth statement is mainly used to derive ratios related to liquidity, solvency, and financial strength of a business unit. Ratios like net capital ratio, working ratio, and current ratio are calculated using assets and liabilities shown in the net worth statement. Capital turnover ratio, however, is calculated using gross income and capital employed, and not directly from the net worth statement. Therefore, capital turnover ratio is the ratio not derived from the net worth statement.
Information booster: Net worth statement provides information about total assets, total liabilities, and owner’s equity at a specific point of time. Liquidity ratios derived from it help in assessing the short-term financial position of the farm or business. Solvency ratios indicate the long-term repayment capacity of the enterprise. Efficiency ratios like capital turnover require income data, which is not part of the net worth statement.
Why other options are incorrect: (b) Net capital ratio is directly derived using total assets and total liabilities from the net worth statement. (c) Working ratio is calculated using current assets and current liabilities available in the net worth statement. (d) Current ratio is a standard liquidity ratio obtained from current assets and current liabilities shown in the statement.