Knowee
Questions
Features
Study Tools

The total asset turnover ratio: a _______ ratio is considered “good” and indicates that the firm is efficient in using its assets to generate______. Group of answer choiceshigh, interestlow, saleshigh, saleslow, interestNext

Question

The total asset turnover ratio: a _______ ratio is considered “good” and indicates that the firm is efficient in using its assets to generate______. Group of answer choiceshigh, interestlow, saleshigh, saleslow, interestNext

🧐 Not the exact question you are looking for?Go ask a question

Solution

The total asset turnover ratio is a measure of a firm's efficiency in using its assets to generate sales. Therefore, a high ratio is considered "good" as it indicates that the firm is efficient in using its assets to generate sales. So, the correct answer is "high, sales".

Similar Questions

Which ratios indicate how efficiently the company generates sales from its assets?Quick asset ratioNet profit ratioSolvency ratioWorking capital turnover

Which of the following is an asset utilization ratio?Multiple Choicereturn on assetsreceivables turnoverreturn on equitycurrent ratio

The ratio, return on assets, is the product of the:Group of answer choicesdebt ratio and the equity ratio.asset turnover ratio and the current ratio.profit margin and the asset turnover ratio.asset turnover ratio and the days inventory ratio.

Which of the following ratios would be most useful in assessing a company’s long-term solvency?Quick RatioGross Profit MarginInventory Turnover RatioDebt-to-Equity Ratio

Which of the following ratios is used to measure a firm's efficiency at using its assets?

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.