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

Question

Quizplus · Accepted Answer

Asset turnover is a financial ratio that measures how efficiently a company uses its assets to generate sales. It is calculated by dividing sales or revenues by the average assets for the period.

Asset Turnover Measures