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Ratio Analysis

Ratios that help determine the efficiency with which a company manages its day-to-day tasks and assets are called___________ ratios.

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Answer #1

asset management or activity

answered by: Hauser
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Answer #2

Asset management or activity ratios provide insights into how efficiently the company is using its assets to generate sales or collect cash from its receivables. Examples of these ratios include a company’s days sales outstanding or average collection period, the inventory turnover ratio, and the fixed assets and total assets turnover ratios.


answered by: Hauser
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