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Efficiency Ratios

April 13, 2006

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As a business owner/manager, you're concerned with making the best use of your assets and being a low-cost producer in your industry. You can determine how efficiently your business uses its assets, and where there's room for improvement, by looking at the following ratios:

• ratios for inventory analysis
• ratios for accounts receivable analysis
• fixed asset turnover
• total asset turnover

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