Asset management ratios measure:
A) a company's ability to earn a profit.
B) a company's ability to meet short-term obligations.
C) how well a company is using debt versus equity.
D) how effectively a company is using its assets.

Question

Quizplus · Accepted Answer

Asset management ratios, also known as turnover ratios or efficiency ratios, specifically measure how effectively a company is using its assets to generate sales or revenue.

Asset Management Ratios Measure