raheem

What is the Usage of Activity Ratios?

I'm preparing for an exam, can anyone please explain about Activity Ratios.
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cristelle
"Accounting ratios that measure a firm's ability to convert different accounts within its balance sheets into cash or sales. Activity ratios are used to measure the relative efficiency of a firm based on its use of its assets, leverage or other such balance sheet items. These ratios are important in determining whether a company's management is doing a good enough job of generating revenues, cash, etc. from its resources. "
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oliver97
"Activeness quotients are employed to see how easily a variety of balances are become gross revenue or even immediate payment. General fluidness percentages typically do not provide an acceptable painting of any organization’utes actual assets, caused by variations in the types of quick assets along with liabilities this company contains. Therefore, it's important to guage the game or runniness connected with particular recent accounts. Assorted ratios occur in order to calculate the experience of receivables, products, and complete property."
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