If a firm's total asset turnover is low,but its fixed asset turnover is high,which of the following ratios should an analyst examine to locate the source of the problem?
A) Debt/equity
B) Price/earnings
C) Return on equity
D) Accounts receivable turnover
E) Times interest earned

Question

Quizplus · Accepted Answer

Accounts receivable is a part of total assets and is a logical next step to check if fixed assets turnover is high.

If a Firm's Total Asset Turnover Is Low,but Its Fixed