Which ratio does not focus on turnover?
A) Inventory turnover.
B) Days' sales in inventory.
C) Receivable turnover.
D) Total asset turnover.
E) Interval measure.

Question

Quizplus · Accepted Answer

The interval measure does not focus on turnover. Instead, it estimates how long a company can continue to operate without needing to secure additional financing or sales, focusing on liquidity rather than the rate at which assets are converted into sales or cash.

Which Ratio Does Not Focus on Turnover