Respuesta :
The financial ratio that indicate how efficiently a company uses its asset to generate sales is the Return on assets.
What are profitability ratio?
Profitability ratio are financial ratios used to determine how efficiently a company uses it assets to generate sales. Profitability ratios include:
- Gross profit margin
- Operating profit margin
- Pretax Margin
- Net profit Margin
- Return on asset
- Return on equity
Asset turnover is an example of activity ratio. Activity ratios determines the efficiency of performing daily task of a firm.
To learn more about financial ratios, please check: https://brainly.com/question/26092288
