Asked by ed thelson Lacombe on Jul 21, 2024
Verified
Edmond reported average total assets of $9,965 million and net sales of $10,430 million.Its total asset turnover equals .96.
Net Sales
The amount of sales revenue left after deducting returns, allowances for damaged or missing goods, and discounts.
Average Total Assets
The mean amount of all assets a company owns, calculated over a specific period of time, used to assess company performance and efficiency.
Asset Turnover
An efficiency ratio that gauges a company's capability to use its assets for producing sales earnings.
- Master the calculation of total asset turnover and understand its criticality.
Verified Answer
AI
Aronne IbarraJul 28, 2024
Final Answer :
False
Explanation :
Total asset turnover is calculated as net sales divided by average total assets. In this case, it would be $10,430 million / $9,965 million = 1.05.
Learning Objectives
- Master the calculation of total asset turnover and understand its criticality.