Spears Co. had net sales of $53,404 million. Its average total assets for the period were $16,302 million. Spears' total asset turnover equals:

Given:

net sales = 53,404,000,000

Average total assets = 16,302,000,000

Total asset turnover is calculated by divided net sales by the average total assets.

Total asset turnover = net sales / average total assets

T. A. O = 53,404,000,000 / 16,302,000,000

T. A. O = 3.2759 OR 3.3

The total asset turnover indicates the company's ability to efficiently deploy its asset in generating revenue.