Strategic Management A Competitive Advantage Approach Concepts and Cases
Quiz 6: The Internal Audit
Activity Ratios Measure How Effectively a Firm Is Using Its
Activity ratios measure how effectively a firm is using its resources.
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Leverage ratios measure a firm's ability to meet maturing short-term obligations.
The total assets turnover ratio is calculated by dividing sales by fixed assets.
Financial ratio analysis becomes less useful if one goes beyond the actual calculation and interpretation of each individual ratio.
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