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Asset Utilization Ratios Explained. Asset, Fixed Asset, Inventory and Receivable Turnover. CPA exam
The asset utilization ratio calculates the total revenue earned for every dollar of assets a company owns. In general, asset utilization is a measure of how well a business is able to utilize their assets to produce revenue. A relatively high ratio means that the company is efficient in using their assets, whereas a low one may indicate poor ...
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