Accountancy, asked by Takirukiomi, 3 months ago

difference between profitability ratio and turnover ratio​

Answers

Answered by MuhammdAslam
0

Profitability ratios measure the overall performance of a company through profits. ... Ratios that are used to measure a company's efficiency include the asset turnover ratio, which measures the amount of revenue a company generates per dollar of assets. It is calculated by dividing a company's sales by its total assets.

Explanation:

profitability ratio

Profitability refers to the financial performance of the business. Accounting Ratios that measure profitability are known as Profitability Ratios. We express these ratios in ‘Percentage’.

turnover ratio

The turnover ratio or turnover rate is the percentage of a mutual fund or other portfolio's holdings that have been replaced in a given year (calendar year or whichever 12-month period represents the fund's fiscal year). ... The ratio seeks to reflect the proportion of stocks that have changed in one year.

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