Net sales ∕ Total assets
A) Total asset turnover
B) Fixed assets turnover
C) Average collection period
D) Inventory turnover

Question

Quizplus · Accepted Answer

The formula provided in the question matches the formula for the total asset turnover ratio, which measures how efficient a company is at using its assets to generate revenue. A higher ratio indicates that a company is using its assets more effectively to generate sales.

Net Sales ∕ Total Assets