In a Recent Year Walmart Reported Total Asset Turnover of 2.44

question 117

Essay

In a recent year Walmart reported total asset turnover of 2.44 whereas Target reported total asset turnover of 1.84.One interpretation of this is that Walmart managed its assets more efficiently than did Target.Can you think of another reason that might explain the difference in turnover ratios that does not imply that Target managers are performing poorly relative to their peers at Walmart?

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Definitions:

United States Army

The land service branch of the United States Armed Forces, responsible for land-based military operations.

Classical Economics

A school of thought in economics that emphasizes the importance of free markets, competition, and self-regulation of markets based on the supply and demand principle.

Inputs

Inputs refer to the resources, materials, labor, and information that are required to produce goods or services in any process or system.

Resources

Resources refer to materials, money, staff, and other assets that can be used by an organization or individual to achieve specific goals or conduct operations.