?

Corporate Finance

Free Version

Upgrade subject to access all content

Easy

Concept of Asset Turnover Ratio

CORPFN-JIXYG1

An asset turnover ratio of 1.75 can be interpreted as:

Select ALL that may apply.

A

\$1.75 in sales are generated for every \$1.00 of assets.

B

\$1.75 in additional assets are generated for every \$1.00 of sales.

C

\$1.00 in sales are generated for every \$1.75 of assets.

D

Lower efficiency compared to the industry average asset turnover ratio of 2.00.