Asset turnover
A) is calculated from information found on a firm's income statement.
B) is calculated by dividing total assets by net sales.
C) reveals how profitable a company is.
D) is net sales divided by total assets.
E) is another term for inventory turnover.

Question

Quizplus · Accepted Answer

Asset turnover is net sales divided by total assets. The ratio indicates how many sales dollars are generated for each dollar of assets.

Asset Turnover