If a company finds that its fixed asset turnover (net sales/fixed assets) has fallen to less than

Question:

If a company finds that its fixed asset turnover (net sales/fixed assets) has fallen to less than 1, what does this indicate?
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.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Entrepreneurial Finance

ISBN: 978-0133140514

6th edition

Authors: Philip J. Adelman; Alan M. Marks

Question Posted: