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
Which components of aggregate expenditure are influenced by real gdp?
Answers (1)
The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, "This is a golden opportunity." The mine will cost $2,700,000 to open and will have an economic life of 11 years.
Answers (1)
Borrowed $60,000 from First American Bank and Trust by issuing a two-year note payable (Doc. No. 14) with a stated annual interest rate of 5%. Check No. 545 (Doc. No. 8) for $60,000 was received from the bank and deposited.
Answers (1)
Of the major forms of business ownership in the united states, this is the most difficult to form
Answers (1)
According to the Huff Gravity Model, the two factors which attract consumers to a store location are: travel time for customer to get to location and the number of customers in a trade area.
Answers (1)
New Questions in Business
A firm realizes that the market price has fallen below its average total costs, and it is now earning a loss. what is the best action for the firm to take in the short run?
Answers (1)
Fixed expenses: a. includes labor, raw materials, and commissions. b. can be estimated by taking into consideration the production. c. are incurred regardless of sales volume. d. must be linked to strategy in the business plan
Answers (1)
4) Which of the following is least likely to be your primary health care provider? a. an allergist b. an internist c. an obstetrician-gynecologist
Answers (1)
T/F A macroeconomist would be concerned with the following statement. "Two major hurricanes caused significant damage to the eastern seaboard and led to a fall in GDP and a rise in unemployment in the U. S. economy."
Answers (1)
At the beginning of the year, Mitchum Enterprises allows for estimated uncollectible accounts of $14,000. By the end ofthe year, actual bad debts total $15,000. Record the write-off to uncollectible accounts.
Answers (1)
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?