3.Asset management ratiosAsset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particulartype of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the averagecollection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnoverratio.Consider the following case
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