A company reports the following: Sales $4,400,000 Average total assets (excluding long-term investments) 2,000,000 Determine the asset turnover ratio. Round your answer to one decimal place.

2.2 times

Step-by-step explanation:

Given that,

Sales = $4,400,000

Average total assets (excluding long-term investments) = 2,000,000

Therefore, it is as follows;

Asset turnover ratio:

= Sales : Average total assets (excluding long-term investments)

= $4,400,000 : 2,000,000

= 2.2 times

Hence, the asset turnover ratio of this company is 2.2 times.