The asset turnover ratio equals
A) net sales divided by average total assets.
B) average total assets divided by net income.
C) average total assets divided by total liabilities.
D) net income divided by average total assets.

Question

Quizplus · Accepted Answer

The asset turnover ratio measures how efficiently a company is using its assets to generate revenue. It is calculated as net sales divided by the average total assets.

The Asset Turnover Ratio Equals