A firm with a total asset turnover lower than the industry standard and a current ratio which meets the industry standard may have

Name: A firm with a total asset turnover lower than the industry standard and a current ratio which meets the industry standard may have
Brand: Quizplus
Rating: 4.8 (50 reviews)

Question

Quizplus · Accepted Answer

A lower total asset turnover compared to the industry standard suggests that the firm may have excessive long-term assets, as it indicates that the firm is not efficiently using its assets to generate sales.

A Firm with a Total Asset Turnover Lower Than the Industry