The asset turnover measure indicates how much effective resource management contributed to the firm's ROE.

Question

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The asset turnover ratio measures how efficiently a company is using its assets to generate revenue. A higher ratio indicates that the company is utilizing its assets more effectively, which can lead to higher profits and a higher ROE. Therefore, it can be inferred that effective resource management can contribute to a firm's ROE through a higher asset turnover ratio.

The Asset Turnover Measure Indicates How Much Effective Resource Management