Asset turnover represents:
A) The ability of the firm to generate income from operations for a particular level of sales.
B) The ability to generate sales from a particular investment in assets.
C) The ability to manage the level of investment in assets for a particular level of assets.
D) The number of days, on average, it takes management to turnover assets.

Question

Quizplus · Accepted Answer

Asset turnover represents the ability to generate sales from a particular investment in assets. It measures the efficiency of how effectively the company uses its assets to generate revenue. A higher asset turnover ratio indicates that the company is better at using its assets to generate sales.

Asset Turnover Represents