Which of the following is the best indicator of management's effectiveness at managing the firm's balance sheet?
A) Debt ratio
B) Total asset turnover
C) Times-interest-earned
D) Operating profit margin

Question

Quizplus · Accepted Answer

Total asset turnover is the best indicator among the options given for assessing management's effectiveness at managing the firm's balance sheet. It measures how efficiently a company uses its assets to generate sales, thus reflecting the management's capability in utilizing the firm's assets.

Which of the Following Is the Best Indicator of Management's