Verizon Communications Inc. (VZ) is a major telecommunications company in the United States. Two recent balance sheets for Verizon disclosed the following information regarding fixed assets:

Verizon’s revenue for the year was $131,868 million. Assume the fixed asset turnover ratio for the telecommunications industry averages approximately 1.1.
a. Determine Verizon’s fixed asset turnover ratio.
b. Interpret this ratio with respect to the industry average.

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Property, plant, and equipment Accumulated depreciation Property, plant, and equipment (net) End of Year (in millions) $ 265,734 (173,819) $ 91,915 Beginning of Year (in millions) $ 252,835 (163,549) $ 89,286