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

Question

Quizplus · Accepted Answer

This statement is true. Total asset turnover ratio is an indicator of how efficiently a company is using its assets to generate revenue. A high turnover ratio means the company is effectively using its assets, while a low ratio indicates that the company may be underutilizing its assets or holding too much inventory.

A High Total Asset Turnover Signiﬁes Eﬃcient Management of Assets;