Verizon Communications is a major telecommunications company in the United States. Verizon's balance sheet disclosed the following

Question:

Verizon Communications is a major telecommunications company in the United States.

Verizon's balance sheet disclosed the following information regarding fixed assets:

Verizon's revenue for 2005 was $75,112 million. The fixed asset turnover for the telecommunications industry averages 1.10.
a. Determine Verizon's fixed asset turnover ratio. Round to two decimal places.
b. Interpret Verizon's fixed asset turnoverratio.

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio. Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...