The following table shows the revenue and average net fixed assets (in millions) for a recent fiscal year for Best Buy and Circuit City Stores, Inc.:
|
|
|
Average Net |
|
|
Revenue |
Fixed Assets |
|
Best Buy |
$27,433 |
$2,354 |
|
Circuit City Stores, Inc. |
10,472 |
662 |
a Compute the fixed asset turnover for each company. Round to two decimal places.
b. Which company uses its fixed assets more efficiently? Explain.