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The asset turnover ratio measures a.the degree to which a company is leveraged. b.how effectively a...

The asset turnover ratio measures a.the degree to which a company is leveraged. b.how effectively a company safeguards its assets. c.how a company's assets turn over into earnings per share. d.how effectively a company uses its assets.

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Answer #1
Option D is the answer

Asset Turnover = Sales/Average total assets

Asset Turnover is a profitability ratio which measures how effective the company is in generating sales through its assets.

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