A low fixed asset turnover ratio often indicates that ______.
A) the firm is efficiently using its current assets
B) the firm is efficiently using its total assets
C) the firm is keeping expenses low
D) marketing efforts are ineffective

Question

Quizplus · Accepted Answer

A low fixed asset turnover ratio typically indicates that a company is not effectively using its fixed assets to generate sales, which could be a result of ineffective marketing efforts among other factors. It does not directly relate to the efficiency of using current or total assets, nor does it specifically indicate that the firm is keeping expenses low.

A Low Fixed Asset Turnover Ratio Often Indicates That ______