if-a-company-has-a-total-asset-turnover-ratio-of-30-what-does-this-imply-about-i

Question

If a company has a total asset turnover ratio of 3.0, what does this imply about its sales and asset levels?

Accepted Answer

The company generates $3 in sales for every $1 of assets.

Answer

The company has $1 in assets for every $3 of sales.

Answer

The company generates $1 in sales for every $3 of assets.

Answer

The company has $3 in assets for every $1 of sales.