How efficiently a firm is using its assets is measured by:

Question

Quizplus · Accepted Answer

Activity ratios, such as asset turnover and inventory turnover, are used to measure how efficiently a firm is using its assets to generate revenue. Liquidity ratios measure a firm's ability to meet short-term obligations, market value ratios measure investor sentiment towards the company, profitability ratios measure the firm's ability to generate profit from its operations, and leverage ratios measure the extent to which a company is using debt financing.

How Efficiently a Firm Is Using Its Assets Is Measured