Are you planning to do a fundamental analysis of the companies in which you wish to invest in? But before that, you need to check the turnover ratios that will help you in analyzing how efficiently the company is utilizing its assets for generating income.

The turnover ratios are used for checking the company’s efficiency and how it uses its assets for earning revenue.

It compares the sales figures with the different assets for measuring how much of the assets are used for generating the number of sales.

In a business, many types of assets are required that are used for generating the revenue of the business so that the business can operate.

These ratios come under efficiency ratios as they help in measuring how a company is utilizing its different assets for achieving its revenue.

So when doing a fundamental analysis of the company in which you are planning to invest, check the below ratios for analyzing the company’s efficiency.