Which of the following is NOT an asset-management ratio?
A) total assets turnover ratio
B) average collection period
C) return on revenue
D) capital assets turnover ratio

Question

Quizplus · Accepted Answer

Asset-management ratios, also known as turnover ratios or efficiency ratios, measure how effectively a company uses its assets to generate sales or revenue. The total assets turnover ratio (A) and capital assets turnover ratio (D) both measure how efficiently a company uses its assets to generate sales. The average collection period (B) measures how efficiently a company manages its accounts receivable. Return on revenue (C), however, is a profitability ratio that measures how much profit a company generates from its revenue, not directly how efficiently it uses its assets.

Which of the Following Is NOT an Asset-Management Ratio