00:01
Which ratio or ratios measure the overall efficiency of the firm managing its investments in assets and generating return to shareholders? a, gross profit margin and net profit margin.
00:14
B, return on investment.
00:16
C, total asset turnover and operating profit margin.
00:20
Or d, return on investment and return on equity.
00:23
The correct answer here is c, total asset turnover and operating profit margin.
00:28
So total asset in turnover or inventory.
00:31
Turnover refers to how fast are they moving products? so if i put a product out on the market, how fast am i turning that over is it being purchased? so inventory turnover measures the efficiency of the firm in managing and selling inventory.
01:13
In order to have the second part of the question said generating return to shareholders, in order to generate a return to shareholders, we have to be making money...