How is turnover calculated?
A) operating income/sales
B) sales/average operating assets
C) operating income/average operating assets
D) average operating assets/operating income

Question

Quizplus · Accepted Answer

Turnover is calculated by dividing sales by average operating assets. This gives a measure of how efficiently a company is using its assets to generate revenue. Option A is the formula for calculating profit margin, Option C is the formula for calculating return on assets, and Option D is not a valid formula for turnover.

How Is Turnover Calculated