A total asset turnover measure of 1.03 means that a firm has $1.03 in:
A) Total assets for every $1 in cash.
B) Total assets for every $1 in total debt.
C) Total assets for every $1 in equity.
D) Sales for every $1 in total assets.
E) Long-term assets for every $1 in short-term assets.

Question

Quizplus · Accepted Answer

Total asset turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue. A total asset turnover of 1.03 means that the company generates $1.03 in sales for every $1 in total assets.

A Total Asset Turnover Measure of 1