The following table shows the revenues and average net fixed assets for a recent fiscal year for three different companies from three different industries: retailing, manufacturing, and communications.
|
|
Revenues
(in millions)
|
Average Net
Fixed Assets(in millions)
|
|
Wal-Mart
|
$258,681
|
$51,686
|
|
Alcoa Inc.
|
21,504
|
12,333
|
|
Comcast Corp.
|
18,348
|
18,427
|
a. For each company, determine the fixed asset turnover ratio. Round to two decimal places.
b. Explain Wal-Mart's ratio relative to the other two companies.