Eastman Company reports the following ($ 000s): net sales of $13,557 for 2011 and $12,670 for 2010;

Question:

Eastman Company reports the following ($ 000s): net sales of $13,557 for 2011 and $12,670 for 2010; end-of-year total assets of $14,968 for 2011 and $18,810 for 2010. Compute its total asset turnover for 2011, and assess its level if competitors average a total asset turnover of 2.0 times.

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.