answersLogoWhite

0

The measure on how effectively a firm uses its assets to generate revenue is the profit margin. This will determine if the firm is running at a profit or at a loss.

User Avatar

Wiki User

11y ago

What else can I help you with?

Related Questions

What revenue measures how effectively a firm manages assets to generate revenue?

_____ measure how effectively a firm manages assets to generate revenue.


Ratios that measure how efficiently a firm manages its assets and operations to generate income?

___ measure how effectively a firm manages assets to generate revenue


How are assets and revenues related?

Productive assets are those that generate one or more revenue streams.


What is asset turnover?

Asset Turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating revenue or income for the company. A higher asset turnover ratio implies that the company is operating efficiently and is able to generate solid revenue income using the assets at their disposal.Formula:Asset Turnover = Sales / Average Total Assets


The assets turnover ratio measures?

Asset turnover measures a firm's efficiency at using its assets in generating sales or revenue - the higher the number the better.


Whats the difference between an assets ability to generate revenue and its ability to generate profit?

The difference between an asset's ability to generate revenue and its ability to generate profit is generating revenue refers to the asset producing a cash flow that is linked directly to the asset. If the asset was not there, then no money would be made. Assets that generate profit do not produce cash directly, but influences consumer and competitor behavior with the intention of producing more revenues.


What is a fixed assets inventory?

fixed asset inventory means the inventory of all fixed assets in business used to generate revenue of business.


What is the amount of the fixed asset?

Fixed assets are those assets which are available in business to generate economic revenue in business for more than one fiscal year.


What are the four building blocks of financial statement analysis?

The four building blocks of financial statement analysis are profitability, liquidity, solvency, and efficiency. Profitability measures a company's ability to generate earnings relative to its revenue, assets, or equity. Liquidity assesses a firm's capacity to meet short-term obligations, while solvency evaluates its ability to meet long-term debts. Efficiency reflects how well a company utilizes its assets to generate revenue.


Which type of performance ratio measures the efficiency of the organization in terms of how well the resources of the organization have been used to generate profit?

The performance ratio that measures an organization's efficiency in using its resources to generate profit is the Return on Assets (ROA). ROA indicates how effectively a company utilizes its assets to produce earnings, reflecting the overall efficiency of asset management. A higher ROA signifies better performance in converting investments into profit.


Why is a measure of income important?

This shows how profitable a company is. And it also shows how much their assets generate in revenue. To say if i invested a dollar into your company, how much does the company output which is revenue.


Is an inevtory an asset or liability?

Inventory is a current assets of company because by selling the inventory company earns revenue and generate profit