Read the following case and compute the fixed asset turnover ratio. Explain in your own words how the result of the turnover ratio of both companies is interpreted. La Flor de Mayo and La Rosa del Monte compete in the moving service sector. The greatest assets of these companies are moving trucks, warehouses and technological equipment. Sales and the average book value of fixed assets (book value) reported in the latest financial statements of each company is as follows:

      La Flor de Mayo                                                   La Rosa del Monte

Sales (in millions)

$12,320                                                                          $15,500

Average book value of fixed assets (in millions)

$7,000                                                                              $8,300