If the investment turnover ratio changes from 3.3 times to 4.1 times then,no matter what other factors may change,this indicates that:
A) return on investment will be lower.
B) return on investment will be higher.
C) less sales are being generated relative to investment.
D) more sales are being generated relative to investment.

Question

Quizplus · Accepted Answer

An increase in the investment turnover ratio indicates that the company is generating more sales relative to its investment. This means that the company is utilizing its assets more efficiently, which is generally seen as a positive sign. Therefore, option D is the correct answer. A decrease in the investment turnover ratio would suggest the opposite - that the company is generating fewer sales relative to investment.

If the Investment Turnover Ratio Changes from 3