Investors and financial analysts wanting to evaluate the operating efficiency of a firm's managers would probably look primarily at the firm's
A)debt utilization ratios.
B)liquidity ratios.
C)asset utilization ratios.
D)profitability ratios.

Question

Quizplus · Accepted Answer

Operating efficiency of a firm's managers can be evaluated through asset utilization ratios that measure how effectively a firm is using its assets to generate revenue. This includes ratios such as inventory turnover, accounts receivable turnover, and total asset turnover. These ratios provide insight into the firm's ability to use its resources efficiently, which is a key factor for effective management.

Investors and Financial Analysts Wanting to Evaluate the Operating Efficiency