Which of the following ratios measures how effectively a firm is managing its assets?
A)quick ratio
B)times interest earned
C)profit margin
D)inventory turnover ratio
E)price earnings ratio

Question

Quizplus · Accepted Answer

The inventory turnover ratio measures how efficiently a company is managing its inventory (assets). A higher inventory turnover ratio indicates that the company is selling inventory quickly and efficiently, which is a good sign.

Which of the Following Ratios Measures How Effectively a Firm