Computing and Interpreting the Fixed Asset Turnover Ratio from a Financial Analyst’s Perspective The following data were included in a recent Apple Inc. annual report ($ in millions):
|
In millions |
2006 |
2007 |
2008 |
2009 |
|
Net sales |
$19,315 |
$24,006 |
$32,479 |
$36,537 |
|
Net property, plant, and equipment |
1,281 |
1,832 |
2,954 |
2,455 |
Required:
1. Compute Apple’s fixed asset turnover ratio for 2007, 2008, and 2009.
2. How might a financial analyst interpret the results?