Asked by Rileigh Campbell on May 18, 2024

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What is Marino's total asset turnover?

A) 12.0
B) 8.33
C) 0.42
D) 2.4

Total Asset Turnover

A financial ratio that measures a company's ability to generate sales from its assets by comparing net sales with total assets.

Net Sales

The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods, and discounts.

Average Total Assets

The average value of all assets owned by a company over a specific time period, typically calculated to assess the company's asset management efficiency.

  • Acquire knowledge on the workings of asset turnover and the methodology for its calculation.
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MS
mandeep sandhuMay 24, 2024
Final Answer :
D
Explanation :
Total asset turnover is calculated as Net Sales / Average Total Assets. Therefore, $480,000 / $200,000 = 2.4.