Which ratio calculates the amount of sales generated by each $1 of debt and equity invested in the firm?
A)Total asset turnover
B)Return on equity
C)Return on assets
D)Equity multiplier
E)DuPont identity

Question

Quizplus · Accepted Answer

Total asset turnover measures how efficiently a company uses its assets to generate sales, indicating the amount of sales generated for each dollar of assets (debt and equity) invested in the firm.

Which Ratio Calculates the Amount of Sales Generated by Each