Accounting · Activity / Turnover Ratios

Which ratio is primarily utilized to evaluate the effectiveness of a firm's management in utilizing its total investment to generate sales?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Inventory Turnover Ratio
2Capital Turnover Ratio✓
3Fixed Assets Turnover Ratio
4Working Capital Turnover Ratio

Correct answer

Capital Turnover Ratio

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