Asked by
Grant Smith
on Oct 23, 2024
Verified
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.
Asset Turnover
A financial ratio that measures the efficiency of a company’s use of its assets in generating sales revenue.
Sales Revenue
The gross revenue is the entirety of income that comes from selling products or services, prior to deducting any costs.
Total Invested Capital
The sum of a company's equity and debt capital, representing the total amount of capital invested in the business.
- Comprehend the theory and calculation involved in asset turnover.
Verified Answer
MA
Learning Objectives
- Comprehend the theory and calculation involved in asset turnover.