A firm has a lower asset turnover ratio than the industry average, which implies

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A lower asset turnover ratio indicates that the firm is utilizing its assets less efficiently than other firms in the industry, which means it is generating less revenue per dollar of assets compared to its competitors. This could lead to lower profitability and potentially impact the firm's ability to pay off debts and avoid insolvency in the long run. However, it does not necessarily have a direct correlation with P/E ratio.

A Firm Has a Lower Asset Turnover Ratio Than the Industry