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Hi sir,
The lecture notes said that the key areas of financial performance are profitability, liquidity and gearing. I recently went through the Kaplan study text, instead of gearing it had the asset turnover. I’m a bit confused, could you please clarify.Hi,
The asset turnover ratio measures the efficiency of the company at generating revenue- eg how many dollars does it earn in sales given the asset investment involved. Therefore, this could fall under the heading of profitability.
Many Thanks
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