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Fixed asset turnover ratio Verizon Communications Inc. is a major telecommunications company in the United States. Two recent balance sheets for Verizon disclosed the following
Fixed asset turnover ratio
Verizon Communications Inc. is a major telecommunications company in the United States. Two recent balance sheets for Verizon disclosed the following information regarding fixed assets:
End of Year (in millions) | Beginning of Year (in millions) | |||||
Property, plant, and equipment | $220,163 | $230,508 | ||||
Less accumulated depreciation | 136,622 | 140,561 | ||||
Property, plant, and equipment (net) | $ 83,541 | $ 89,947 |
Verizons revenue for the year was $131,620 million. Assume that the fixed asset turnover ratio for the telecommunications industry averages approximately 1.1.
a. Determine Verizons fixed asset turnover ratio. Round to one decimal place. [___]
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