Firms A and B operate in the same industry
Firms A and B operate in the same industry. Firm A has a fixed asset turnover ratio of 1.22 while firm B has a fixed asset turnover ratio of 0.88. Holding all else constant, given this information, which of the following conclusions can be made? (Select all that apply)
| Firm B is considered more efficient than firm A with the use of its fixed assets. | |
| Firm A is considered more efficient than firm B with the use of its fixed assets. | |
| Firm A is generating sales with its fixed assets at a greater rate than firm B. |
2.
What is eBuy’s total asset turnover in 20×1?
| 0.45 | |
| 2.24 | |
| 1.93 | |
| 0.52 |
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