a-company-has-a-fixed-asset-turnover-ratio-of-60-while-the-industry-average-is-4

Question

A company has a fixed asset turnover ratio of 6.0, while the industry average is 4.5. What strategic actions might the company take to leverage this advantage?

Accepted Answer

Expand operations to capitalize on efficient asset use.

Answer

Focus on reducing sales to improve turnover ratio.

Answer

Reduce operations to maintain current efficiency levels.

Answer

Increase debt to improve turnover ratio further.