Question:medium

............. indicate the speed at which activities of the business are being performed.

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Turnover ratios help in evaluating operational efficiency and the speed of activity cycles like inventory or receivables management.
Updated On: Jan 13, 2026
  • Liquidity ratios
  • Turnover ratios
  • Solvency ratios
  • Profitability ratios
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The Correct Option is B

Solution and Explanation

- Turnover Ratios, such as inventory and receivables turnover, evaluate how efficiently and quickly business operations like sales and collections are executed.
- Liquidity ratios indicate short-term financial health, solvency ratios assess long-term stability, and profitability ratios gauge returns.
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