A company has higher inventory days and lower fixed asset turnover ratio than its peerThe company is more efficient only in managing its inventoryThe company is more efficient in managing its inventory and utilising its fixed assetsThe company is less efficient in managing its inventory and in utilising its fixed assetsThe company is more efficient only in utilising its fixed assets

Suppose your business sells umbrellas, and your inventory turnover is 10 turns per year. However, you have a competitor whose inventory turnover is 15 turns per year. Whose supply chain is more efficient in terms of inventory turn? Group of answer choices Your supply chain is more efficient because your sale is 10 times higher than your average stock Your supply chain is more efficient because your sale is 1.5 times higher than your competitor's sale Your competitor's supply chain is more efficient because its sale is 15 times higher than its average stock Your competitor's supply chain is more efficient because its sale is 1.5 times higher than your sale

Multiple Choice QuestionWhat type of ratio measures the speed with which a company can turn its assets into cash in order to meet its debts?Multiple choice question.Profitability ratioDebt utilization ratioLiquidity ratioLeverage ratio

Since converting the firm's inventory to profits is a key function of management, firms use ______ to measure the effectiveness of management in utilizing the assets that are available.Multiple choice question.leverage ratiosdebt ratiosactivity ratiosliquidity ratios

Which ratio is the cost of goods sold divided by the average inventory?Multiple choice question.The inventory turnover ratioThe debt to owners' equity ratioThe return on sales ratioThe current ratio

Which company has the higher receivables turnover ratio?Company ACompany BAverage Net Accounts Receivable$2,000$5,000Average Inventory$4,000$20,000Net Sales$40,000$100,000Multiple choice question.Company A's is greaterCompany B is greaterBoth are the same