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asset turnover kroger co., a national supermarket chain, reported the following data in its financial statements for a recent year: total revenue $10,512,000 total assets at end of year 3,350,000 total assets at beginning of year 3,220,000 a. compute the asset turnover. round to one decimal place.

Answer :

tutorconsortium120

The asset turnover ratio, commonly referred to as the total asset turnover ratio, gauges how effectively a business utilises its assets to generate revenue.

Total assets on average equal (1550000+1490000/2)

What is mean by asset turnover?

Net Sales / Average Total Assets equals the asset turnover ratio.

It is the gross sales for a certain time period less any customer-taken discounts, allowances, or refunds. Make sure the net sales figures are taken from the same period when comparing the asset turnover ratios of several organizations.

Features of asset turnover:

A company's sales or revenues are compared to the value of its assets using the asset turnover ratio. The asset turnover ratio can be used to gauge how effectively a business uses its assets to produce income.

A company's sales or revenues are compared to the value of its assets using the asset turnover ratio.

To learn more about  asset turnover refer to:

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