Inventory turnover is indeed not a direct measure of a company's overall ability to use its assets to generate revenue. Instead, it specifically reflects how efficiently a company manages its inventory levels. A high inventory turnover ratio indicates that a company is selling and replacing its stock quickly, which can suggest effective inventory management and a strong demand for products. However, it does not encompass the broader aspects of asset utilization across all types of assets within the company.
The phrase "ability to use assets to generate revenue" implies a more comprehensive view of all assets, including fixed assets like property, plant, and equipment, not just inventory. Therefore, stating that inventory turnover is a measure of a company's overall asset utilization would not be accurate. This is why the statement in the question is false, as inventory turnover is limited to assessing inventory efficiency rather than overall asset efficiency in generating revenue.