Asset turnover ratio is calculated as
A)net sales divided by profit.
B)average total assets divided by profit.
C)net sales divided by average total assets.
D)average total assets divided by net sales.

Question

Quizplus · Accepted Answer

Asset turnover ratio is calculated by dividing net sales by average total assets. This ratio measures how efficiently a company is using its assets to generate revenue. The higher the ratio, the more efficiently a company is using its assets to generate sales.

Asset Turnover Ratio Is Calculated as