Question - Fixed Asset Turnover Ratio
The following table shows the revenue and average net fixed assets (in millions) for a recent fiscal year for Eastern Company and Western, Inc.:
|
Eastern Company
|
52,571
|
4,281
|
|
Western, Inc.
|
19,242
|
1,327
|
a. Compute the fixed asset turnover for each company. Round to two decimal places.
b. Which company uses its fixed assets more efficiently?