The asset turnover of an organisation can be calculated as:
A) the amount of sales revenue divided by total invested capital.
B) total invested capital divided by sales revenue.
C) total sales revenue divided by profit.
D) profit divided by sales margin.

Question

Quizplus · Accepted Answer

Asset turnover is a financial ratio that measures how efficiently a company is using its assets to generate revenue. It is calculated by dividing sales revenue by total invested capital. This shows how much revenue is generated for each unit of investment in the company's assets. Therefore, option A is the correct answer.

The Asset Turnover of an Organisation Can Be Calculated As