The capital turnover ratio is calculated by dividing:
A) sales by stockholders' equity.
B) net income by total assets.
C) sales by total assets.
D) net income by stockholders' equity.

Question

Quizplus · Accepted Answer

The capital turnover ratio, also known as the asset turnover ratio, is calculated by dividing sales or revenue by total assets. This measures how efficiently a company uses its assets to generate sales.

The Capital Turnover Ratio Is Calculated by Dividing