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What type of ratio is used to measure activity?

An activity ratio, such as asset turnover or inventory turnover, is typically used to measure how efficiently a company is utilizing its assets to generate revenue. These ratios help assess the company's operational efficiency and effectiveness.


What two ratios measure factors that affect profitability?

what tw ratios measure factors


What is math used for in swimming?

It can be used to measure the efficiency of your strokes.


Is a measure of the efficiency of an investment?

The ROI is a measure of the efficiency of an investment. ROI is a term used in the financial world, it means return on investment.


What are Activity Ratios?

Activity Ratios or Efficiency Ratios are used to measure the effectiveness of a firm's use of resources. Good companies would always put their resources to optimum utilization. Better the activity or efficiency ratio, the better it is for the company and it means the company is utilizing its resources properly and effectively. The ratios that come under this category are: 1. Average Collection Period 2. Degree of Operating Leverage 3. Days Sales Outstanding Ratio 4. Average payment period 5. Asset Turnover Ratio 6. Stock Turnover Ratio 7. Receivables Turnover Ratio


How do you measure company performance?

You can measure a company's performance by assessing their financial position. There are many financial ratios that can be used to see if a company is performing.


What are four major financial ratios?

Liquidity, Profitability, Leverage, and Activity/Efficiency


How do you measure the efficiency?

Efficiency can be measured by comparing the input resources (such as time, money, or energy) to the output results achieved. This can be quantified by calculating ratios like output per unit of input or comparing actual performance to a benchmark or standard. Continuous monitoring and improvement of processes can help organizations optimize efficiency over time.


Is profitability of a firm an adequate measure of its efficiency?

to what extent does profitability of a firm measure its efficiency


Which financial ratios are used by banks?

1. Liquidity Ratios - Ability of the company to pay off debt 2. Activity Ratios - How quickly a firm can convert its non-cash assets to cash assets 3. Debt Ratios - Ability of the firm to repay long-term debt 4. Profitability Ratios - To Measure the firms use of its assets and control of its expenses to generate an acceptable rate of return 5. Market Ratios - To Measure the investor response to owning a company's stock and also the cost of issuing stock


Is a measure of what is produced divided by what is consumed?

Efficiency


How was trigonometry discovered?

Ancient Egyptian and Babylonian mathematicians lacked the concept of an angle measure, but they studied the ratios of the sides of similar triangles and discovered some properties of these ratios. The ancient Nubians used a similar methodology.