Starbucks had a Total Assets Turnover (TAT) ratio of 1.2 in 2007, which was an improvement over a TAT of 0.96 in 2006. If Starbucks had the exact same level of sales, debt, and profit in 2007 as they did in 2006, how did their TAT improve?
Total Asset Turnover = Sales/Total Assets
The sales level remained the same, if the TAT improved, ...
The solution explains the reasons for improvement in total asset turnover.