If you are concerned about your company's ability to generate sales through its efficient use of assets, you should calculate the ______ ratio.

The asset turnover ratio is a key indicator of a company’s efficiency in using its assets to generate sales. This ratio measures the amount of revenue generated for each dollar of assets owned by the company. A higher asset turnover ratio suggests that the company is effectively utilizing its assets to produce sales, which is particularly important for assessing operational efficiency.

By calculating the asset turnover ratio, you can gain insight into how well the firm is managing its assets, which directly impacts profitability and financial health. This is especially relevant for small businesses that must maximize every dollar spent on assets to remain competitive. Understanding this ratio can help business owners make informed decisions about asset management and sales strategies.

The other options do not specifically measure efficiency in generating sales from assets. The current ratio assesses liquidity and the company’s ability to meet short-term obligations; the debt ratio examines the proportion of debt relative to assets, indicating financial leverage; and the gross profit ratio focuses on profitability without considering asset efficiency. Thus, these alternatives do not align with the focus of the question regarding asset utilization for sales generation.