Final answer:
The asset turnover ratios measure management's effectiveness in generating sales from investments in assets.
Step-by-step explanation:
The asset turnover ratios measure management's effectiveness in generating sales from investments in assets. It indicates how efficiently a company is using its assets to generate revenue. The ratio calculates the amount of sales generated for every dollar invested in assets. A higher ratio indicates better efficiency in utilizing assets to generate sales. The asset turnover ratio is a financial metric that gauges a company's proficiency in generating sales from its assets. Specifically, it is an indicator of management's effectiveness in generating sales from investments in assets. It measures how efficiently a firm uses its assets to produce sales, which means that the correct answer to what asset turnover ratios measure is d. Management's effectiveness in generating sales from investments in assets. Calculation of the asset turnover ratio is typically done by dividing a firm's net sales by its average total assets. A higher turnover ratio indicates that the company is using its assets more effectively to generate sales. It suggests that management is efficient at utilizing the company's investment in assets for revenue generation.