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 measures how efficiently a company is using its assets to generate sales. It is calculated by dividing net sales by total assets, indicating how much in sales is generated per dollar of assets. It can help investors and analysts assess management's ability to generate sales using the resources at their disposal.

Total Asset Turnover Is Used to Evaluate