Asked by Elizabeth Hubbard on Jun 11, 2024

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_____ 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.
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Suyen Nichols 2020Jun 14, 2024
Final Answer :
C
Explanation :
Average collection period and inventory turnover are both measures of how efficiently a company uses its assets, specifically its accounts receivable and inventory. These are examples of asset management ratios.