Final answer:
Five key ratios used to measure a company's sales efficiency are inventory turnover, days sales in inventory, receivables turnover, days sales in receivables, and current ratio, all of which provide insights into the company's operational performance and liquidity.
Step-by-step explanation:
Five ratios that measure a company's ability to sell merchandise inventory and collect receivables are: inventory turnover, days sales in inventory, receivables turnover, days sales in receivables, and current ratio.
An inventory turnover ratio indicates how often a company sells and replaces its inventory. Days sales in inventory reveals the average number of days it takes a company to sell its inventory. Receivables turnover measures how efficiently a firm uses its assets by determining how often receivables are converted into cash during a period.
Days sales in receivables tells us the average number of days it takes to collect payment after a sale has been made. Lastly, the current ratio helps in assessing a company's ability to pay short-term liabilities with its current assets.