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Activity ratios analyze ________.
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Activity ratios analyze ________.
Activity ratios analyze ________.
▸ how well a company is making use of its assets
▸ a firm's ability to pay its short-term obligations
▸ a firm's ability to pay its long-term obligations
▸ the leverage a firm has to pay when borrowing funds
▸ the extent to which a business is financed by debt
Textbook
Business in Action
Edition:
9
th
Authors:
Bovee, Thill
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how well a company is making use of its assets
Activity ratios analyze how well a company is managing and making use of its assets. The inventory turnover ratio and accounts receivable turnover ratio are examples of activity ratios.
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