Suppose you find that a particular company generates $.40 in annual sales for every dollar in total

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Suppose you find that a particular company generates $.40 in annual sales for every dollar in total assets. How often does this company turn over its total assets?

The total asset turnover here is .40 times per year. It takes 1/.40 = 2.5 years to turn assets over completely.

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Corporate Finance

ISBN: 9781265533199

13th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Question Posted: Nov 18, 2023 11:56 PM

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Suppose you find that a particular company generates $.40 in annual sales for every dollar in total

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Thats correct The total asset turnover ratio is a measure of how efficiently a company is using its ...View the full answer

Corporate Finance

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