Select Page

Operating Efficiency

Yet another dimension of the usefulness of the ratio analysis, relevant from the viewpoint of management, is that it throws light on the degree of efficiency in the management and utilization of its assets. The various activity ratios measure this kind of operational efficiency. In fact, the solvency of a firm is in the ultimate analysis, dependent upon the sales revenues generated by the use of its assets total as well as its components.

[vfb id=1]

Share This