The net fixed assets of Auburn Media Ltd. is $850 million. The sales of the firm is $1,420 million. The firm's fixed assets turnover ratio is:
A)1.35 times.
B)2.42 times.
C)1.67 times.
D)2.8 times.
E)3.45 times.

Question

Quizplus · Accepted Answer

Fixed assets turnover ratio is calculated by dividing the sales by the net fixed assets. So, the fixed assets turnover ratio of Auburn Media Ltd. can be calculated as follows:

Fixed assets turnover ratio = Sales / Net fixed assets
= $1,420 million / $850 million
= 1.67 times

Therefore, the best choice for the fixed assets turnover ratio of Auburn Media Ltd. is option C) 1.67 times.

The Net Fixed Assets of Auburn Media Ltd