Which of the following is true?

Firm B shall improve its total asset turnover ratio since it is lower than the

industry average and thus indicates an inefficient utilization of assets.

Firm A shall restructure its capital structure to achieve a higher financial leverage

since it appears to be lower than the industry average.

Neither firm needs to make any improvement.

Firm A shall improve its total asset turnover ratio since it is higher than the

industry average and thus indicates an inefficient utilization of assets.