In: Finance
The extent to which assets are used to support sales is indicated by which of the following ratios:
liquidity ratios
asset utilization ratios
financial leverage ratios
profitability ratios
The total revenue earned for every dollar of assets owned by a company is calculated using asset utilization ratio.
So the extent to which assets are used to support sales is indicated by assets utilization ratio.
So correct answer is asset utilization ratios.