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) |
|
Wal Mart |
$258,681 |
$51,686 |
|
Alcoa Inc. |
21,504 |
12,333 |
|
Comcast Corporation |
18,348 |
18,427 |
a. For each company, determine the fixed asset turnover ratio. Round to two decimal places.
b. Explain Wal Mart’s ratio relative to the other two companies.