FedEx Corporation (FDX) and United Parcel Service, Inc. (UPS) compete in the package delivery business. The major fixed assets for each business include aircraft, sorting and handling facilities, delivery vehicles, and information technology. The sales and average book value of fixed assets reported on recent financial statements for each company were as follows:

a. Compute the fixed asset turnover ratio for each company.
b. Which company appears more efficient in using fixed assets?
c. Interpret the meaning of the ratio for the more efficient company.

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Sales (in millions) Average book value of fixed assets (in millions) FedEx $69,693 29,292 UPS $74,094 28,529