Asked by Divine Diamante on May 28, 2024
Verified
Which one of the following measures the efficiency with which a firm uses it resources to generate sales?
A) Price-earnings ratio
B) Return on equity
C) Total asset turnover
D) Current ratio
E) Return on assets
Total Asset Turnover
This is a financial efficiency ratio that measures how well a company uses its assets to generate sales revenue.
Price-Earnings Ratio
A valuation metric indicating the ratio of a company's stock price to its earnings per share, used to evaluate the relative value of shares.
Return On Assets
A measure of a company's profitability, indicating how efficient it is at using its assets to generate earnings.
- Discern and quantify assorted financial ratios, related to profitability, liquidity, and efficiency metrics.
- Employ financial metrics to analyze asset management and efficiency of turnover.
Verified Answer
EM
Eriah MooreJun 02, 2024
Final Answer :
C
Explanation :
Total asset turnover measures the efficiency with which a firm uses its resources to generate sales. It is calculated by dividing sales by total assets.
Learning Objectives
- Discern and quantify assorted financial ratios, related to profitability, liquidity, and efficiency metrics.
- Employ financial metrics to analyze asset management and efficiency of turnover.