CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Which of the following ratios would NOT be useful to evaluate a company's operating efficiency?
A. Quick ratio
B. Fixed asset turnover and total asset turnover
C. Equity turnover
Explanation: Quick ratio = (cash + marketable securities + receivables)/current liabilities

It is used to evaluate a company's internal liquidity.

User Contributed Comments 3

User Comment
sheenalim there's no such equity turnover ratio is there? i can't find it anywhere in the textbook and the LOS here.
sheenalim ok i googled and equity turnover is
annual sales / average stockholder's equity.
measures the rate of return on common equity and how well a company uses its equity to generate revenue.
Rubbish check up dupont formula
You need to log in first to add your comment.