Which of the following ratios is used to evaluate a company's efficiency in using its assets?
A)Current ratio.
B)Debt to assets ratio.
C)Return on assets ratio.
D)Asset turnover ratio.

Question

Quizplus · Accepted Answer

The asset turnover ratio measures a company's ability to generate revenue from its assets. It is calculated by dividing a company's net sales by its total assets. This ratio indicates how efficiently a company is using its assets to generate revenue.

Which of the Following Ratios Is Used to Evaluate a Company's