If the total asset turnover ratio is less than one, then the average total assets are not generating enough sales.

Name: If the total asset turnover ratio is less than one, then the average total assets are not generating enough sales.
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Question

Quizplus · Accepted Answer

A total asset turnover ratio less than one indicates that the company is not efficiently using its assets to generate sales, as it's generating less in sales than the value of its assets.

If the Total Asset Turnover Ratio Is Less Than One