A low assets to net sales ratio represents the use of debt to finance acquisitions,growth,or stock repurchase.

Question

Quizplus · Accepted Answer

A low assets to net sales ratio indicates that the company has a high level of assets relative to its net sales, which suggests that it is utilizing its assets effectively to generate revenue. It does not necessarily indicate the use of debt to finance acquisitions, growth, or stock repurchase.

A Low Assets to Net Sales Ratio Represents the Use