Which ratios are calculated for measuring the efficiency of operation of business based on effective utilisation of resources?
Activity ratios
The correct answer is option 3. Activity ratios are calculated to measure the efficiency of the operation of a business by assessing how effectively the resources are being utilized in generating revenue. These ratios include inventory turnover, receivables turnover, and asset turnover.
Important Questions from Ratio analysis
Which of the following ratio is also termed as leverage ratio?
Which of the following formulae is INCORRECT?
Interest Coverage Ratio and proprietary ratio comes under:
Consider the below mentioned statements and state the correct code of the statements being true or false.
Statement (I): A debt-equity ratio of 2 : 1 indicates that for every 1 unit of equity, the company has raised 2 units of debt.
Statement (II): The cost of floating an equity issue is lesser than the cost of floating a debt
Code:
Debt Service Coverage Ratio indicates which one of the following?
