Which ratio calculates the amount of sales generated by each $1 invested in assets?
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 ratio calculates the amount of sales generated by each $1 invested in assets. It is calculated by dividing total revenue by average total assets.

Which Ratio Calculates the Amount of Sales Generated by Each