Which one of these ratios measures the efficiency at which a firm employs its assets?
A)Profit margin
B)Return on equity
C)Equity multiplier
D)P/E ratio
E)Total asset turnover

Question

Quizplus · Accepted Answer

The total asset turnover ratio measures how efficiently a firm is using its assets to generate revenue. A higher total asset turnover ratio indicates that a company is using its assets more efficiently to generate revenue.

Which One of These Ratios Measures the Efficiency at Which