March 30, 2017

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Total asset turnover indicates the firm's

A. liquidity
B. debt postition
C. ability to use its assets to generate sales
D. profitability

I can't remember the name of the ratio right now, but I remember reading about an asset ratio that is a metric for asset turnover.....

the ratio by itself is meaningless bbut when compared with company and industry benchmarks it can tell financial managers if the company physical capital is depreciated and out of date or if the company has spent too much cas capital on new machines.

I can't explain myself any better than that right now.

I think (C) is the correct answer

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