.1 Which of the following ratios are key components in measuring a company\'s op
ID: 2588130 • Letter: #
Question
.1 Which of the following ratios are key components in measuring a company's operating efficiency? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) Profit margin Equity ratio Return on total assets Total asset turnover 1.2 Which ratio summarizes the components applicable in 1.1? Debt ratio Total asset turnover Profit margin Return on total assetsExplanation / Answer
Answer 1.1
Profit margin ; Total asset turnover
Explanation : Profit margin indicates the % of Profit (operating ) in sales whereas Total asset turnover idicates how much sales is generated for every dollor invested in assets .
Answer 3
Days' Sales Uncollected ; Accounts Receivable Turnover
Eplanation : Days' Sales Uncollected indicates number of days before receivable will be collected . Accounts Receivable Turnover indicates number of times in a year that Accounts Receivable is converted into cash.
Note :
Your other two answers are correct
Answer 1.2 Return on total assets = Net Income / Average total assets
Answer 2 Working Capital = Current Assets - Current Liabilities
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