The total assets turnover ratio indicates
A)the sales generated from each dollar of assets.
B)the portion of the sales dollar left over for the common shareholders after covering all operating costs and subtracting claims of creditors and preferred shareholders.
C)the portion of the sales dollar left over for the preferred shareholders after covering all operating costs and subtracting claims of creditors and common shareholders.
D)the proportion of total assets, or total financing, provided by common shareholders contrasted with the financing provided by creditors and preferred shareholders.
E)the proportion of total assets, or total financing, provided by preferred shareholders contrasted with the financing provided by creditors and common shareholders.

Question

Quizplus · Accepted Answer

The total assets turnover ratio measures the amount of sales generated by a company for each dollar of assets it owns. This ratio is calculated by dividing net sales by total assets. It indicates how efficiently a company is using its assets to generate revenue.

The Total Assets Turnover Ratio Indicates