The ________ ratio measures a company's ability to generate sales in relation to its assets.
A)net sales-to-working capital
B)net sales to total assets
C)average collection period
D)average inventory turnover

Question

Quizplus · Accepted Answer

The net sales to total assets ratio, also known as the asset turnover ratio, is used to measure a company's efficiency in generating sales in relation to its assets. A higher ratio indicates that a company is using its assets more efficiently to generate sales.

The ________ Ratio Measures a Company's Ability to Generate Sales