Top Efficient Stocks to Enrich Your Portfolio
In the latest stock highlights, Zacks.com features top efficient stocks that investors should consider adding to their portfolio. Efficiency ratios play a crucial role in determining a company’s financial health and potential for impressive returns. Here are some key efficiency ratios to consider while selecting stocks:
Receivables Turnover
Receivables turnover ratio is a critical indicator of a company’s ability to extend credit and collect debts efficiently. A high receivables turnover ratio is desirable as it reflects the company’s capability to collect accounts receivables promptly.
Asset Utilization
Asset utilization ratio measures a company’s efficiency in converting assets into output. A high asset utilization ratio signifies that the company effectively utilizes its total assets to generate sales, indicating overall efficiency.
Inventory Turnover
The inventory turnover ratio is a popular efficiency measure that indicates a company’s ability to manage its inventory levels effectively. A high inventory turnover ratio suggests efficient inventory management, while a low ratio may indicate declining sales and excess inventory.
In conclusion, investing in companies with favorable efficiency levels can lead to impressive returns. Consider these top efficient stocks highlighted by Zacks.com to enrich your portfolio and make informed investment decisions. Stay updated with the latest recommendations from Zacks Investment Research for profitable investment opportunities.