A firm has a higher asset turnover ratio than the industry average, which implies
A. the firm has a higher P/E ratio than other firms in the industry.
B. the firm is more profitable than other firms in the industry.
C. the firm is utilizing assets more efficiently than other firms in the industry.
D. the firm has higher spending on new fixed assets than other firms in the industry.
Answer:C
A firm has a higher asset turnover ratio than the industry average, which implies
A. the firm has a higher P/E ratio than other firms in the industry. B. the firm is more profitable than other firms in the industry. C. the firm is utilizing assets more efficiently than other firms in the industry. D. the firm has higher spending on new fixed assets than other firms in the industry.