Which financial ratio is used to measure a company’s ability to utilize its assets to generate sales?

The Asset Turnover Ratio is the correct answer because it specifically assesses how effectively a company uses its assets to generate revenue. This ratio is calculated by taking the company's total sales or revenue and dividing it by its average total assets. A higher ratio indicates that the company is efficient at using its assets to produce sales, which is crucial for understanding operational efficiency.

In contrast, the Current Ratio and the Quick Ratio are liquidity ratios that provide insight into a company's ability to pay its short-term obligations. These ratios focus more on financial health rather than asset efficiency. The Debt to Equity Ratio, on the other hand, measures the relative proportion of shareholders' equity and debt used to finance a company's assets, offering insight into the company's leverage and financial structure rather than its efficiency in generating sales from assets. Therefore, the Asset Turnover Ratio is specifically focused on the relationship between assets and sales, making it the appropriate measure for this question.