Which of the following best describes what a turnover ratio measures?
A)how many times the denominator is being used to generate the numerator value in a given period.
B)for each dollar invested in the denominator, how much in the numerator value is generated.
C)how efficiently the management of the firm is managing the denominator value.
D)all of the above.

Question

Quizplus · Accepted Answer

The turnover ratio can describe all of the mentioned aspects: it measures how many times a particular value (denominator) is used to generate another value (numerator) within a specific period, indicating for each dollar invested how much is generated, and it reflects on the efficiency of management in handling the resources or values in question.

Which of the Following Best Describes What a Turnover Ratio