Question

A company reports the following: Sales $6,750,000 Average total assets (excluding long-term investments) 2,500,000 Determine the asset turnover ratio. If required, round your answer to one decimal place. fill in the blank 1

Answer 1

2.7

Step-by-step explanation:

Calculation to Determine the asset turnover ratio

Using this formula

Asset Turnover = Sales/Average Total Assets

Let plug in the morning

Asset Turnover =$6,750,000/2,500,000

Asset Turnover =2.7

Therefore the asset turnover ratio is 2.7