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A change in the asset turnover ratio from 2.0 to 1.8 would indicate: ____________

a. a favorable trend in using assets to generate sales.
b. an increase in the effectiveness of assets in producing sales.
c. an unfavorable trend in using assets to generate sales.
d. None of these choices are correct.

Respuesta :

The decline in the value of the asset turnover ratio indicates an unfavorable trend in using assets to generate sales.

What is the asset turnover ratio?

The asset turnover ratio is a financial ratio known as the activity ratio. It measures the efficiency with which a firm carries out its operations. The higher the asset turnover ratio , the more efficient the firm is and the lower the ratio, the less efficient the firm is.

The asset turnover ratio = revenge / average total ratio

To learn more about financial ratios, please check: https://brainly.com/question/26092288

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