Which of the following is the correct formula for asset turnover ratio?
A)Net sales ÷ Average total assets
B)Net sales ÷ Cost of goods sold
C)Net Sales ÷ Net assets
D)Net profit ÷ Net sales

Question

Quizplus · Accepted Answer

Asset turnover ratio measures how efficiently a company is using its assets to generate revenue. The formula for asset turnover ratio is net sales divided by average total assets.

Which of the Following Is the Correct Formula for Asset