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What is known by activity ratio?

Activity ratio is defined as an important factor which can be adopted in monitoring different function of firm and depends on monetary or assets. It is quite a useful tool which helps to understand the difference between other companies and also can put an influence on other companies. It is an effective measure through which calculation of profit is possible and finally achievement can be determined.

Activity ratio homework help will give you knowledge about the income recovery that is obtained by company depending on their available assets and resources. You will come across with some of the basic concepts related to activity ratios such as mathematics, logical reasoning and operation research.  The students can easily study about activity ratio and would be a part of monetary interpretation.

Different types of ratios

You will learn from that there are different types of ratios which revolve around financial world:

  • Debt ratio
  • Activity ratio
  • Liquidity ratio
  • Profitability ratio

The financial ratios enable the company to compare between industries, comparison which may occur different period of time in thecompany. The ratios can finally analyze past as well as present performance of any company.

Examples of activity ratio

While looking for our activity ratio assignment help, you will also know about different operating ratios such as inventory turnover, total assets turnover ratios, average collection period, etc.

  • Inventory turnover ratio:

It is a ratio that would indicate any company’s investment in case of inventory turns out into revenue within a particular year. In case of higher turnover ratio, there is a chance of better performance of company.

  • Average collection period:

When you look forward to activity ratio homework help, there are ratios which help to measure the entity of average sales which remain in the hands of customers. There is a collection period which would automatically develop larger investment in assets.

  • Fixed assets turnover:

It is an indication through which the productivity of entity can be determined. It helps to measure the fixed assets of firm that depends on buildings, land and equipment that can finally generate revenue.

Expert assistance on activity ratio comes up with activity ratio assignment help which enables to measure ability of firm. Through ratio it is possible to understand the given individual through existing assets and finally, can generate values.

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