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    Starbucks had a Total Assets Turnover (TAT) ratio of 1.2 in

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    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?

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    Solution Preview

    The total asset turnover is a measure of several different things when analyzed, and one of the main points that it shows is how well the company is using their assets to generate additional money. Companies that have lower profit margins have a higher asset turnover due to their pricing strategies, which may be the case here, ...

    Solution Summary

    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?

    $2.19