Asset turnover measures
A) the portion of the assets that have been financed by creditors.
B) the overall rate of return on assets.
C) how often a company replaces its assets.
D) how efficiently a company uses its assets to generate sales.

Question

Quizplus · Accepted Answer

Asset turnover measures how efficiently a company uses its assets to generate sales. Therefore, option D is the correct answer. Options A, B, and C do not accurately describe asset turnover ratio.

Asset Turnover Measures