Asked by
Bailey Deitch
on Nov 14, 2024Verified
Asset turnover measures
A) how often a company replaces its assets.
B) how efficiently a company uses its assets to generate sales.
C) the portion of the assets that have been financed by creditors.
D) the overall rate of return on assets.
Asset Turnover
A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue, indicating how effectively assets are utilized.
Generate Sales
The activity of creating or increasing revenue through the sale of goods or services.
- Understand the significance and computation of asset turnover ratios.
Verified Answer
KP
Learning Objectives
- Understand the significance and computation of asset turnover ratios.