Asset turnover measures a firm's ________.
A) ability to use assets so that they don't become outdated
B) rate at which personnel leave the firm
C) ability to command higher prices
D) efficiency at generating revenues from assets.

Question

Quizplus · Accepted Answer

Asset turnover measures how efficiently a company is using its assets to generate revenue. It is calculated by dividing a company's revenue by its total assets. A higher asset turnover ratio indicates that a company is generating more revenue per dollar of assets. Therefore, the correct answer is D.

Asset Turnover Measures a Firm's ________