Asset turnover is most closely associated with a company's liquidity position.

Name: Asset turnover is most closely associated with a company's liquidity position.
Brand: Quizplus
Rating: 4.8 (44 reviews)

Question

Quizplus · Accepted Answer

Asset turnover is a measure of a company's efficiency in using its assets to generate revenue. It is calculated by dividing revenue by total assets. It is not a measure of liquidity, which focuses on a company's ability to meet short-term obligations with its current assets.

Asset Turnover Is Most Closely Associated with a Company's Liquidity