Which of the following ratios measures how efficiently the firm uses all of its assets to generate sales?

A) fixed asset turnover
B) total asset turnover
C) debt ratio
D) times interest earned ratio

Total Asset Turnover

An activity ratio that measures how efficiently the firm uses all of its assets to generate sales; a high ratio generally reflects good overall management.

Efficiently

Performing tasks in the most effective way with the least waste of time and effort.

Assets

Economic resources owned or controlled by an individual or organization that are expected to produce positive economic value.