a-company-has-a-fixed-asset-turnover-ratio-of-40-while-the-industry-average-is-3

Question

A company has a fixed asset turnover ratio of 4.0, while the industry average is 3.0. What does this suggest about the company's efficiency?

Accepted Answer

The company is more efficient than the industry average.

Answer

The company is less efficient than the industry average.

Answer

The company is equally efficient as the industry average.

Answer

The company has higher debt levels than the industry average.