easy · Principles of Finance financial-statements-markets-wc
Company A has 2,000 million in annual revenue and total assets of 1,000 million. Company B has 5,000 million in revenue and total assets of 5,000 million.
Which company is using its assets more efficiently to generate sales?
- Company B, because it has higher total revenue.
- Company A, with an asset turnover of 2.0x.
- Both are equally efficient because they are profitable.
- Company B, because its assets and revenue are perfectly matched.
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