Tag: investment

  • Asset Turnover Ratios

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    GSWone
    in

    Asset turnover ratios measure how efficiently a company utilizes its assets to generate revenue, providing insight into operational effectiveness. Higher turnover ratios indicate that a company is effectively using its assets to drive sales, while lower ratios may suggest inefficiencies or underutilization. These ratios are particularly useful in assessing management performance and comparing companies within…

  • Leverage Ratios

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    GSWone
    in

    Leverage ratios are financial metrics used to assess a company’s ability to meet its financial obligations by comparing its debt levels to equity or assets. These ratios help investors and analysts understand the level of financial risk a company carries, as higher leverage indicates greater reliance on borrowed funds. Companies use leverage strategically to amplify…