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Meaning of activity ratios

 

 

 

Activity ratios

 

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Business glossary

 

Meaning of term activity ratios :

 

Activity ratios are ratios that measure how efficiently a business is using the resources that it has. There are a number of activity ratios, but the most commonly used are stock turnover (the number of times a year the firm sells its stocks) and the debt collection period (the average number of days it takes to collect debts).

 

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Activity ratios

 

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Meaning of term activity ratios

 

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