Question: The DSO can also be evaluated by comparison with the terms on which the firm - Select - its goods. If its trend has been

The DSO can also be evaluated by comparison with the terms on which the firm

-

Select

-

its goods. If its trend has been rising and

-

Select

-

policy has not changed, this would indicate a need to speed up the collection of receivables. The fixed assets turnover ratio measures how effectively the firm uses its plant and equipment. Its equation is:

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