CP 9-5 Fixed asset turnover: three industries
The following table shows the revenues and average net fixed assets for a recent fiscal year for three different companies from three different industries: retailing, manufacturing, and communications.
|
Average Net |
||
|
Revenues |
Fixed Assets |
|
|
(in millions) |
(in millions) |
|
|
Walmart |
$421,849 |
$105,093 |
|
Occidental Petroleum Corporation |
19,045 |
33,837 |
|
Comcast Corporation |
37,937 |
23,685 |
a. For each company, determine the fixed asset turnover ratio. Round to two decimal places.
b. Explain Walmart’s ratio relative to the other two companies.