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March 31, 2015

Homework Help: finance (total asset turnover)

Posted by Jason on Saturday, July 26, 2008 at 4:29am.

Total asset turnover indicates the firm's?

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

I read about a asset turnover ratio in the text book. this ratio by itself is useless but when compared to the company and industry historical asset turnover ratios, managers can determine if the company is spending too much or not enough money on tangabile capital.

I think asset turnover and the comparison of these ratios displays the ability to use is assets to generate sales. I like C for this answer...

Is this correct??

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