Total asset turnover is used to evaluate:
A) The number of times operating assets were sold during the year.
B) The necessity for asset replacement.
C) The efficiency of management's use of assets to generate sales.
D) The cash flows used to acquire assets.
E) The relationship between asset cost and book valuE.

Question

Quizplus · Accepted Answer

Total asset turnover is a performance metric that evaluates how efficiently the management uses the company's assets to generate sales. It is calculated by dividing the net sales by the average total assets of the company. The higher the ratio, the better the asset utilization and sales generation efficiency.

Total Asset Turnover Is Used to Evaluate