Higher turnover ratio means:

Better utilization of assets

The correct answer is option 3- Better utilization of assets.

Activity (or Turnover) Ratio- These ratios indicate the speed at which, activities of the business are being performed. The activity ratios express the number of times assets employed, or, for that matter, any constituent of assets, is turned into sales during an accounting period. Higher turnover ratio means better utilisation of assets and signifies improved efficiency and profitability, and as such are known as efficiency ratios.