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Answer Posted / nehal k.ruparel
Turnover ratios measure the degree to which assets are
efficiently employed in a firm. These Ratios are also known
as Activity Ratios or Asset Management Ratios. These Ratios
are very important for a business concern to find out how
well the facilities at the disposal of the concern are
being used. These Ratios are usually calculated on the
basis of sales or cost of goods sold. High Turnover Ratios
indicate better utilization of resources.
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