Asked by
Jillian Wilder
on Nov 09, 2024Verified
A low fixed asset turnover ratio often indicates that ______.
A) the firm is efficiently using its current assets
B) the firm is efficiently using its total assets
C) the firm is keeping expenses low
D) marketing efforts are ineffective
Fixed Asset Turnover Ratio
A financial metric that measures a company's ability to generate net sales from its fixed assets, such as plant, property, and equipment, indicating efficiency in using these assets to generate revenue.
Marketing Efforts
Initiatives undertaken by a company to promote and sell its products or services to its target market.
Total Assets
The sum of all owned resources with economic value that a company or individual possesses.
- Leverage financial ratios to gauge a company's efficiency in handling assets through activity ratios.
Verified Answer
IZ
Learning Objectives
- Leverage financial ratios to gauge a company's efficiency in handling assets through activity ratios.