Asset turnover is calculated as follows:
A) net sales divided by average total assets.
B) property, plant and equipment divided by total assets.
C) long-lived assets divided by total sales.
D) net sales divided by net long-lived assets.

Question

Quizplus · Accepted Answer

Asset turnover is calculated by dividing net sales by average total assets, which measures how efficiently a company uses its assets to generate sales.

Asset Turnover Is Calculated as Follows