An asset turnover ratio of 0.4 means that $4 in net income is generated for every $10 in assets.
BT: Comprehension

Name: An asset turnover ratio of 0.4 means that $4 in net income is generated for every $10 in assets. BT: Comprehension
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Question

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An asset turnover ratio of 0.4 means that for every $1 in assets, $0.40 in net income is generated. Therefore, the correct statement would be that $4 in net income is generated for every $10 in assets.

An Asset Turnover Ratio of 0