What does the Working Capital Turnover ratio indicate? Option: The amount of revenue generated for every unit of working capital., The company's efficiency in using its fixed assets., The time it takes for the company to collect cash from its customers., The company's ability to generate revenue from its assets.

<< Back

Hi

Show Ans

i

What does the Working Capital Turnover ratio indicate?

The amount of revenue generated for every unit of working capital.

The company's efficiency in using its fixed assets.

The time it takes for the company to collect cash from its customers.

The company's ability to generate revenue from its assets.

<< Back

Hi

Show Ans

i

What does the Asset Turnover ratio indicate about a company's operations?

The company's ability to manage debt

The company's market share

The profitability of the company's products or services

The efficiency of using assets to generate revenue

<< Back

Hi

Show Ans

i

What does a high asset turnover ratio signify?

"The company is effectively using its assets to generate revenue"

"The company has a large market share"

"The company has a strong brand reputation"

"The company is highly profitable"

<< Back

Hi

Show Ans

i

What does a high Inventory Turnover ratio coupled with a low Inventory Number of Days suggest?

The company has a high production capacity.

The company has a low production capacity.

The company's products are slow-moving.

The company's products are fast-moving.

<< Back

Hi

Show Ans

i

What does a consistently positive cash flow from operations indicate about a company?

The company's core business operations are generating cash and are likely successful

The company is aggressively investing in research and development

The company is heavily reliant on external financing to fund its operations

The company is effectively managing its working capital

<< Back

Hi

Show Ans

i

Which of the following is NOT a leverage ratio?

Interest Coverage Ratio

Debt to Equity Ratio

Inventory Turnover Ratio

Debt to Asset Ratio