Ask Question
BusinessBusiness
24 October, 03:55

What is the impact on the total asset turnover ratio if sales increase significantly while there is no change in any of the other variables?

+3
Answers (1)
  1. 24 October, 04:00
    0
    The total turnover increases

    Explanation:

    Asset Turnover Ratio is a measure of how efficient the assets of a company is when compared with the company's sales or revenue. To calculate Asset turnover ration, the net sales is set as a percentage of the company's total assets.

    The higher the turnover of the asset based on the calculation then the higher the chances that organisation is generating revenue efficiently from its assets. A lower turnover however is the implication that the company is not efficiently using its assets and it could imply some internal issues.

    Therefore, the higher the sales without any change in assets means the Asset Turnover will increase or be higher and it will indicate higher efficiency
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “What is the impact on the total asset turnover ratio if sales increase significantly while there is no change in any of the other variables? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Cadmium Technologies Inc. believes that the sole purpose of its existence is to maximize profits for its stockholders. The firm has often been criticized for not engaging in any social investments.
Answers (1)
In economics, when discussing the factors of production, the term land refers to A) farmland. B) real estate. C) capital goods. D) all natural resources.
Answers (2)
Eliza takes her 1-year-old son, danny, to visit an infant-toddler program in which she hopes to enroll him. danny eagerly explores the room as long as eliza is present. when eliza leaves the room to fill out some forms, danny becomes somewhat upset.
Answers (1)
Joe lit a fire in his fireplace and left it unattended. He had failed to check to see if the flue was open, so the smoke entered the house and discolored the walls, ceiling, and drapes. Joe also had to hire a company to remove the smoke odor.
Answers (1)
Widget Corp. wants to shift its list of inventory to a cloud so that its different branches can access it easily. The company needs a cloud computing option that would provide high flexibility to add or drop resources.
Answers (2)
New Questions in Business
Now consider a strangle using the same call with a strike price of $100 and a different put with a strike price of $95. Both have the same expiration date.
Answers (1)
Mullineaux Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its costs of equity is 15 percent, and the cost of debt is 8 Percent. The relevant tax rate is 35 percent.
Answers (1)
That the total dollar amount of the debits equals the total dollar amount of the credits in the ledger accounts can be verified through a (n) a. balance sheet b. trial balance c. chart of accounts d. income statement
Answers (1)
Coronado Shoes Fool Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case.
Answers (1)
Suppose during 2014 that Federal Express reported the following information (in millions) : net sales of $35,497 and net income of $98.
Answers (2)
Home » Business » What is the impact on the total asset turnover ratio if sales increase significantly while there is no change in any of the other variables?
Sign Up Forgot Password?