Answer:
1.69
Explanation:
asset turnover ratio = net sales / average assets
I looked up the missing information and found the following:
total assets year 1 = $4,000,000
total assets year 2 = $4,300,000
net sales year 2 = $7,000,000
average assets = ($4,000,000 + $4,300,000) / 2 = $4,150,000
asset turnover ratio = $7,000,000 / $4,150,000 = 1.6867 = 1.69
The higher the asset turnover ratio, the more efficient a company is. Therefore, a higher asset turnover ratio is always better although there is no fixed parameter.
