Asked by
Tristan Llewellyn
on Nov 14, 2024
Verified
Asset turnover ratio is calculated as
A) sales divided by net income.
B) average total assets divided by net income.
C) sales divided by average total assets.
D) average total assets divided by sales.
Asset Turnover Ratio
A measure of how efficiently a company uses its assets to generate sales revenue, calculated by dividing total sales by average total assets.
Average Total Assets
The mean value of a company's assets over a specific period, used in various financial analyses to gauge performance.
- Acquire knowledge on the relevance and methodology for computing asset turnover ratios.
Verified Answer
NM
Learning Objectives
- Acquire knowledge on the relevance and methodology for computing asset turnover ratios.