Final answer:
The drop in Woolworths' assets turnover ratio during 2020 and 2021 could be due to increased total assets without a proportional increase in sales, COVID-19 pandemic disruptions, and shifts in consumer behavior affecting sales and asset utilization.
Step-by-step explanation:
The assets turnover ratio is an indicator of how efficiently a company uses its assets to generate sales. For Woolworths, the decrease in this ratio during 2020 and 2021 could be attributed to several factors. These factors may include an increase in total assets due to capital investments or acquisitions that have not yet proportionally increased sales, disruptions in operations caused by the COVID-19 pandemic which affected many retailers, and changes in consumer behavior during this period leading to possibly lower sales volumes or shifts to online channels that may not require the same level of asset utilization.