Which one of the following measures the eﬃciency with which a ﬁrm uses it resources to generate sales?
A) Price-earnings ratio
B) Return on equity
C) Total asset turnover
D) Current ratio
E) Return on assets

Question

Quizplus · Accepted Answer

Total asset turnover measures the efficiency with which a firm uses its resources to generate sales by dividing sales by total assets. It indicates how well a company is using its assets to generate revenue. The higher the total asset turnover, the more efficient the company is in using its assets to generate revenue.

Which One of the Following Measures the Eﬃciency with Which