Question:
............. indicate the speed at which activities of the business are being performed.
............. indicate the speed at which activities of the business are being performed.
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Turnover ratios help in evaluating operational efficiency and the speed of activity cycles like inventory or receivables management.
Updated On: Jan 18, 2025
- Liquidity ratios
- Turnover ratios
- Solvency ratios
- Profitability ratios
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The Correct Option is B
Solution and Explanation
- Turnover Ratios (e.g., inventory turnover, receivables turnover) measure the efficiency and speed at which business activities (like sales or collections) are performed.
- Liquidity ratios assess short-term financial health, solvency ratios measure long-term stability, and profitability ratios focus on returns.
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