Question: Your company's fixed asset turnover is 30. The average fixed asset turnover ratio for all companies is 3. Assuming you own all your fixed assets,
Your company's fixed asset turnover is 30. The average fixed asset turnover ratio for all companies is 3. Assuming you own all your fixed assets, this likely means that:
A. If you want to increase your firm's revenues by $30 you must add $3 in assets.
B. The sustainable growth rate of your company will be lower than the average company, all else equal.
C. Your competitors lease their fixed assets.
D. The internal growth rate of your company will be higher than the average company, all else equal.
E. You're in an industry that requires very high start-up costs.
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