Which of the following is used to measure how efficiently a company uses the resources at its disposal?
A)Solvency ratios.
B)Asset turnover ratios
C)Market ratios.
D)Liquidity ratios.

Question

Quizplus · Accepted Answer

Asset turnover ratios are used to measure how efficiently a company uses its assets to generate revenue. It shows how much revenue is generated for every dollar spent on assets. This ratio can provide insight into how well a company is managing its resources and if it is maximizing the use of its assets to generate revenue. Solvency ratios measure a company's ability to pay long-term debts, market ratios measure a company's stock price and investor perception, and liquidity ratios measure a company's ability to meet short-term obligations.

Which of the Following Is Used to Measure How Efficiently