In order to get a critical knowledge of a company’s efficiency with respect to its operations, i.e. inventory, debtors, creditors, assets, the company’s efficiency ratios need to be studied carefully. Efficiency ratios, also known as the turnover ratios or activity ratios or the performance ratios, tell us about how efficiently the company is churning its assets and generating cash from its sales.

To read more visit : https://www.elearnmarkets.com/blog/understanding-concept-turnover-ratios/