Final answer:
The asset turnover ratio helps analyze a company's efficiency in using assets to generate sales.
Step-by-step explanation:
The ratio that helps a user analyze a company’s efficiency in using assets to generate sales is the asset turnover ratio.
The asset turnover ratio indicates how effectively a company is using its assets to generate revenue. A higher asset turnover ratio suggests that the company is efficiently using its assets to generate sales, while a lower ratio may indicate inefficiency.
For example, if a company has net sales of $500,000 and average total assets of $1,000,000, the asset turnover ratio would be 0.5 ($500,000 / $1,000,000). This means that the company generates $0.50 in sales for every dollar of assets.