A Fixed Asset Turnover Ratio of 1

A fixed asset turnover ratio of 1.65 for a company indicates that:

A) a company is generating $1.65 of sales per average dollar of fixed asset.
B) a company is generating $1.65 of net income per average dollar of fixed asset.
C) a company has $1.65 of long term debt for every dollar of fixed asset.
D) a company has $1.65 of current assets for every dollar of fixed asset.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free