Verizon Communications is a major telecommunications company in the United States. Two recent balance sheets for Verizon
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Verizon Communications is a major telecommunications company in the United States. Two recent balance sheets for Verizon disclosed the following information regarding fixed assets:
Verizon’s revenue for Year 2 was $106,565 million. Assume the fixed asset turnover for the telecommunications industry averages approximately 1.10.
a. Determine Verizon’s fixed asset turnover ratio for Year 2. Round to two decimal places.
b. Interpret Verizon’s fixed asset turnoverratio.
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.
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Related Book For
Corporate Financial Accounting
ISBN: 978-1133952411
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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