Which of the following is an asset utilization ratio?
A) Profit margin
B) Inventory turnover
C) Return on equity
D) Return on assets

Question

Quizplus · Accepted Answer

Inventory turnover is an asset utilization ratio because it measures how efficiently a company is using its inventory to generate sales. Profit margin and return on equity are profitability ratios, while return on assets is a profitability ratio that also takes into account the utilization of assets.

Which of the Following Is an Asset Utilization Ratio