Which ratio indicates how efficiently a company uses its assets to generate revenue?
کون سا تناسب اس بات کی نشاندہی کرتا ہے کہ ایک کمپنی اپنے اثاثوں کو آمدنی پیدا کرنے کے لئے کس حد تک موثر طریقے سے استعمال کرتی ہے؟
Answer: Asset turnover ratio
Explanation
Asset turnover ratio measures revenue generated per unit of assets.
It shows how effectively a company utilizes its assets to produce sales.
This question appeared in
Past Papers (4 times)
Account Officer Past Papers, Syllabus, Jobs (2 times)
SPSC 25 Years Past Papers Subject Wise (Solved) (1 times)
SPSC Past Papers (1 times)
This question appeared in
Subjects (1 times)
ACCOUNTING (1 times)
Related MCQs
- Which ratio is used to measure a company's efficiency in using its assets to generate revenue?
- Which financial ratio measures a company’s ability to generate profit from its total revenue?
- Which ratio helps determine how efficiently a company manages its inventory?
- Which financial ratio measures a company's ability to generate profit from its shareholders' equity?
- Which ratio is used to assess a company’s profitability relative to its total revenue?
- Which ratio measures the profitability of a company relative to its total revenue?
- Rose Company reported net income of $24,000, net sales of $400,000, and average assets of $600,000. Calculate the profit margin ratio.
- The measure of how efficiently the assets resources are employed by the firm is called ____?
- All properties, assets and records of the Central Board of Revenue were transferred to _______ by the enactment of FBR Act 2007.
- What does the quick ratio exclude from current assets?
