Question

In 2020, Swifty Corporation reported net income of $5.6 billion, net sales of $190 billion, and average total assets of $80 billion. What is Swifty Corporation's asset turnover?

Answer 1

Asset turnover = 2.4

Step-by-step explanation:

The formula for asset turnover is denoted by;

Asset turnover = Net sales / Average total assets

Given that;

Net sales = $190 billion

Average total assets = $80 billion

Then,

Asset turnover = $190 billion / $80 billion

Asset turnover = 2.375

Asset turnover = 2.4 approximated.