Total asset turnover reflects a company's ability to use its assets to generate sales and is an important indication of operating efficiency.

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Total asset turnover is a ratio that measures a company's ability to generate sales from its assets. It is calculated by dividing a company's net sales by its total average assets. A higher ratio indicates that a company is using its assets efficiently to generate sales, while a lower ratio may indicate that a company is not using its assets effectively. Therefore, Total asset turnover is an important indicator of operating efficiency.

Total Asset Turnover Reflects a Company's Ability to Use Its