The asset turnover ratio is a way to evaluate how well a company can pay its short-term liabilities.

Name: The asset turnover ratio is a way to evaluate how well a company can pay its short-term liabilities.
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The asset turnover ratio measures how efficiently a company uses its assets to generate revenue, not its ability to pay short-term liabilities. The ratio is calculated by dividing net sales by average total assets.

The Asset Turnover Ratio Is a Way to Evaluate How