Asset management ratios indicate ____.
A) how well a firm is using its assets to generate sales
B) how efficiently a firm is allocating its liabilities
C) the return on assets
D) the profitability of the firm

Question

Quizplus · Accepted Answer

Asset management ratios measure how effectively a company is using its assets to generate sales. These ratios include inventory turnover, accounts receivable turnover, and total asset turnover. They indicate how efficiently a firm is using its resources to generate sales, and are an important measure of a company's overall financial health.

Asset Management Ratios Indicate ____