A retailer will have low asset turnover when it has _____.
A)high debt
B)a high profit margin
C)inappropriate inventory
D)high financial leverage

Question

Quizplus · Accepted Answer

Low asset turnover indicates that a retailer is not efficiently using its assets to generate sales. Inappropriate inventory levels, such as having too much slow-moving or outdated stock, can contribute to low asset turnover. High debt, high profit margin, and high financial leverage do not necessarily correlate with low asset turnover.

A Retailer Will Have Low Asset Turnover When It Has