Asset management ratio

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Asset management ratio is those ratios—accounts receivable turnover, average collection period, inventory turnover, and asset turnover—which measure how effectively a company uses its assets.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Asset management ratios. Those ratios—accounts receivable turnover, average collection period, inventory turnover, and asset turnover—which measure how effectively a company uses its assets.

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Asset management ratios. A set of ratios that measure how effectively a firm is managing its assets.

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