Turnover Ratios and Profitably ratios measure the same thing. Do you agree? Give reasons to explain...
Turnover Ratios and Profitably ratios measure the same thing. Do you agree? Give reasons to explain your answer
Homework Answers
Answer - No I do not agree. Profitability ratio and turnover ratio are not the same thing.
Turnover ratio measures the production by the usage of assets . Profitability ratio measures the return which is earned by the production considering all the costs. Thus they are different.
Turnover ratio consist of inventory turnover ratio , working capital turnover ratio etc. Whereas profitability ratio contains gross profit ratio , net profit ratio etc.
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Turnover Ratios and Profitably ratios measure the same thing. Do
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