Asset turnover:
A) is calculated by dividing total assets by net sales
B) is calculated from information found on a firm's income statement
C) compares how well competing firms manage their assets
D) reveals how profitable a company is
E) is another term for inventory turnover

Question

Quizplus · Accepted Answer

Asset turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue. It is calculated by dividing net sales by total assets, and it helps compare how well competing firms manage their assets.

Asset Turnover