The asset turnover ratio measures how effectively a business is using its assets to generate sales.

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Shelby Malone · Accepted Answer

Final Answer : True, Explanation :  The asset turnover ratio is calculated by dividing net sales by total assets, which gives an indication of how efficiently a company is using its assets to generate sales. A higher asset turnover ratio generally indicates that a company is making more efficient use of its assets.

The asset turnover ratio measures how effectively a business is using its assets to generate sales.

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