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Isisjsjsbsns Dhdjdjd
on Nov 08, 2024
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In words, what does a total asset turnover of 1.5 times mean?
A) For each $1 of sales generated the firm has total assets of $1.50.
B) For each $1 of total assets, the firm generated $1.50 in sales.
C) For each $1 of total assets, the firm generated $1.50 in net income.
D) For each $1 of net income generated, the firm has total assets of $1.50.
E) The firm completely replaces its fixed assets three times each year, on average.
Total Asset Turnover
A financial efficiency ratio that measures how effectively a company uses its assets to generate sales revenue.
Fixed Assets
Fixed assets are long-term tangible pieces of property or equipment that a firm owns and uses in its operations to generate income.
- Acquire an understanding of crucial financial ratios, notably profit margin, fixed asset turnover, and total asset turnover.
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Learning Objectives
- Acquire an understanding of crucial financial ratios, notably profit margin, fixed asset turnover, and total asset turnover.