If Suzlon Energy Ltd.wants to focus on the strength of its wind-turbine division,it will use
A)liquidity ratios.
B)balance sheet ratios.
C)return on investments.
D)operating ratios.
E)debt ratios.

Question

Quizplus · Accepted Answer

Operating ratios analyze an organization’s operational efficiency and performance, such as gross margin and inventory turnover. These ratios help assess how well a specific division, such as wind-turbine, is performing and identify areas for improvement. Therefore, using operating ratios can help Suzlon Energy Ltd. focus on the strength of its wind-turbine division.