Net sales divided by average total assets is the calculation for which of the following ratios?
A)Net profit margin
B)Asset turnover
C)Current ratio
D)Return on assets

Question

Quizplus · Accepted Answer

The calculation of net sales divided by average total assets gives us the asset turnover ratio. This ratio measures the efficiency with which a company is utilizing its assets to generate sales.

Net Sales Divided by Average Total Assets Is the Calculation