A high total asset turnover signifies efficient management of assets; a low asset turnover ratio signifies less efficient management.

Question

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A higher asset turnover ratio indicates that a company is generating more revenue per dollar of assets, which indicates efficient management of assets. Conversely, a lower asset turnover ratio suggests that a company is generating less revenue per dollar of assets, which indicates less efficient management.

A High Total Asset Turnover Signifies Efficient Management of Assets;