Nestrum, a real estate management company, employs qualified analysts to predict customers' buying habits and budgets. Hence, the company has been able to acquire at least one customer per month. In the given scenario, the analysts most likely need to analyze the company's _____ to measure how effectively it has been using its assets to generate revenues.

Question

Quizplus · Accepted Answer

Asset management ratios measure how effectively a company uses its assets to generate revenues. This is the most relevant ratio for Nestrum to analyze in order to determine how well it is utilizing its resources to acquire customers. Leverage ratios assess the amount of debt taken on by the company, profitability ratios measure the company's ability to generate profits, and liquidity ratios evaluate the company's ability to meet short-term obligations. While these ratios may also be important for Nestrum to analyze, they are not directly related to measuring the effectiveness of the company's use of assets to generate revenue.

Nestrum, a Real Estate Management Company, Employs Qualified Analysts to Predict