All else held constant, a higher asset turnover:
A)increases ROA
B)decreases ROA
C)has no effect on ROA
D)may raise or lower ROA, depending on how it affects revenues.

Question

Quizplus · Accepted Answer

A higher asset turnover means that the company is generating more revenue with the same level of assets. This indicates efficiency in asset utilization and can lead to an increase in ROA.

All Else Held Constant, a Higher Asset Turnover