Activity ratios
Activity ratios
Glossary of business
Definition of activity ratios
Activity ratios are ratios that measure how efficiently a business is using the resources that it has. There are a number of activity ratios, but the most commonly used are stock turnover (the number of times a year the firm sells its stocks) and the debt collection period (the average number of days it takes to collect debts).
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Terminology about business
Job world
Definition and meaning of activity ratios
Meaning of activity ratios
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