Explain How to Calculate Total Asset Turnover

question 79

Essay

Explain how to calculate total asset turnover. Describe what it reveals about a company's financial condition, whether a higher or lower ratio is desirable, and how it is best applied for comparative purposes.

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Definitions:

Domestic Price

The price of goods or services within a country's borders, unaffected by international trade factors.

World Price

The international market price at which goods, services, or commodities are bought and sold across countries.

Trade Sector

Refers to the part of a country's economic activity that is involved in the exchange of goods and services, domestically and internationally.

Economy

The system of production, distribution, and consumption of goods and services in a particular geographical region.