Activity Ratios (Efficiency Ratios) | Financial Statement Analysis
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Activity Ratios (Efficiency Ratios) | Financial Statement Analysis
Activity ratios (aka efficiency ratios) tell you how well a company is performing in certain areas. For example: 1. asset turnover tells you how well the company is using its assets to generate sales (asset turnover is thus a measure of sales efficiency) 2. fixed asset turnover tells you how well the company is using its property, plant, and ...
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