How is turnover calculated?
A)operating income/average operating assets
B)average operating assets/operating income
C)operating income/sales
D)sales/average operating assets

Question

Quizplus · Accepted Answer

Turnover is calculated by dividing sales by average operating assets. Therefore, the correct option is D, which is sales/average operating assets. Option A calculates the return on assets ratio, while option B is incorrect as it divides assets by income. Option C calculates the profit margin ratio.

How Is Turnover Calculated