Efficiency ratios indicate
A)whether the firm is using its assets productively.
B)whether the firm is liquid.
C)whether the firm is profitable.
D)whether the firm is profitable and how highly the firm is valued by investors.

Question

Quizplus · Accepted Answer

Efficiency ratios are used to analyze how well a company is utilizing its assets to generate revenue. Therefore, they provide an indication of whether the firm is using its assets productively.

Efficiency Ratios Indicate