Asked by Elizabeth Hubbard on Jun 11, 2024
Verified
_____ include average collection period and inventory turnover.
A) Liquidity ratios
B) Debt management ratios
C) Asset management ratios
D) Profitability ratios
Asset Management Ratios
Financial metrics used to assess how efficiently a company manages its assets to generate revenue, including turnover ratios for inventory, receivables, and fixed assets.
Average Collection Period
The average number of days it takes for a company to receive payments owed by its customers for credit sales.
Inventory Turnover
A financial metric indicating how many times a company has sold and replaced its inventory over a specific period.
- Understand the significance of utilizing financial ratios for the evaluation of a company's efficiency and financial status.
Verified Answer
Learning Objectives
- Understand the significance of utilizing financial ratios for the evaluation of a company's efficiency and financial status.
Related questions
The Ratio of EBIT to Interest Expenses Is Known as ...
Most Financial Ratios Are Formed from Sets of Financial Statement ...
Holding All Other Variables Constant, Which of the Following Would ...
The Usefulness of Ratios Is Enhanced by Comparisons ...
The Quick Ratio Is the Same as Current Ratio Except ...