The following information is available for the Thompson Company:
$\begin{array} { l }
\text { Sales for year}&\$ 1,000,000\
\text { Average invested capital for year}&\$500,000\
\text {return on investment }&10\%
\end{array}$

What is the capital turnover ratio?
A) 0.10
B) 0.35
C) 0.50
D) 2.00

Question

The following information is available for the Thompson Company:
$\begin{array} { l  }
 \text { Sales for year}&\$ 1,000,000\
 \text { Average invested capital for year}&\$500,000\
 \text {return on investment }&10\%
\end{array}$

What is the capital turnover ratio?
A) 0.10
B) 0.35
C) 0.50
D) 2.00

Quizplus · Accepted Answer

The capital turnover ratio is calculated by dividing sales by the average invested capital. In this case, it's $1,000,000 / $500,000 = 2.00.

The Following Information Is Available for the Thompson Company What Is the Capital Turnover Ratio? A) 0

The Following Information Is Available for the Thompson Company What Is the Capital Turnover Ratio?
A) 0