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Fixed asset turnover ratio The following table shows the sales and average book value of fixed assets for three different companies from three different industries for a recent year: Company (Industry) Sales (in millions) Average Book Value of Fixed Assets (in millions) Alphabet (Google) Inc. (Internet) $74,989 $26,450 Comcast Corporation (communications) 74,510 32,309 Wal-Mart Stores, Inc. (retail) 485,651 117,281 a. For each company, determine the fixed asset turnover ratio. Round to one decimal place. b. Explain Comcast's fixed asset turnover ratio relative to the other two companies.

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

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Chapter
Section
Chapter 10, Problem 10.26EX
Textbook Problem

Fixed asset turnover ratio

The following table shows the sales and average book value of fixed assets for three different companies from three different industries for a recent year:

Company (Industry) Sales (in millions) Average Book Value of Fixed Assets (in millions)
Alphabet (Google) Inc. (Internet) $74,989 $26,450
Comcast Corporation (communications) 74,510 32,309
Wal-Mart Stores, Inc. (retail) 485,651 117,281
  1. a. For each company, determine the fixed asset turnover ratio. Round to one decimal place.
  2. b. Explain Comcast's fixed asset turnover ratio relative to the other two companies.

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Accounting
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