Sales to fixed assets will have the least meaning if assets are relatively new.

Question

Quizplus · Accepted Answer

Sales to fixed assets ratio, also known as the asset turnover ratio, measures a company's efficiency in using its assets to generate sales. The age of the assets does not inherently diminish the meaning or usefulness of this ratio. Whether assets are new or old, what matters is how effectively a company uses its assets to produce sales. The ratio can be meaningful in evaluating companies with relatively new assets if it provides insight into how well those assets are being utilized to generate revenue.

Sales to Fixed Assets Will Have the Least Meaning If