Activity ratio: Difference between revisions
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''Financial ratio analysis.'' | ''Financial ratio analysis.'' | ||
A financial ratio designed to measure the efficiency of management in controlling the working capital | A financial ratio designed to measure the efficiency of management in controlling the working capital or other assets used by the business. | ||
For example, the inventory turnover ratio. | For example, the inventory turnover ratio. | ||
Activity ratios are also known as ''efficiency ratios''. | Activity ratios are also known as ''management efficiency ratios''. | ||
Latest revision as of 10:06, 2 February 2019
Financial ratio analysis.
A financial ratio designed to measure the efficiency of management in controlling the working capital or other assets used by the business.
For example, the inventory turnover ratio.
Activity ratios are also known as management efficiency ratios.