Receivables turnover ratio and asset turnover ratio are both efficiency ratios.

Question

Quizplus · Accepted Answer

Receivables turnover ratio and asset turnover ratio are both efficiency ratios used to measure how effectively a company is using its assets to generate revenue. Receivables turnover ratio measures how quickly a company collects its outstanding debts from customers, while asset turnover ratio measures how efficiently a company is using its assets to generate revenue.

Receivables Turnover Ratio and Asset Turnover Ratio Are Both Efficiency