The calculation of total asset turnover is:

A) Gross profit divided by average total assets.
B) Average total assets divided by gross profit.
C) Net sales divided by average total assets.
D) Average total assets multiplied by net sales.
E) Net assets multiplied by total assets.

Total Asset Turnover

A metric indicating how effectively a business utilizes its assets to produce sales or income.

Average Total Assets

The average value of all the assets a company owns, calculated over a specific period, typically used in financial analysis to assess efficiency.

Gross Profit

The difference between revenue and the cost of goods sold, essentially the profit a company makes before deducting operating expenses.