The ratios that indicate how efficiently the company generates sales from its assets is: asset turnover ratio.
Asset turnover ratio can be defined as a ratio that help to determine how a company generate profits from their assets at particular period of time.
The turnover ratio play a major role in determining how companies or organization sales are generated.
The formula for asset turnover ratio is:
Asset Turnover Ratio = Net Sales÷Average Total Assets
Therefore The ratios that indicate how efficiently the company generates sales from its assets is: asset turnover ratio.
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