All else the same, lower fixed asset turnover ratio would likely be associated with a firm which has a high capital intensity ratio, relative to other firms in the same industry.

Question

Quizplus · Accepted Answer

A lower fixed asset turnover ratio indicates that a company is not generating as much revenue per dollar of fixed assets, which often correlates with high capital intensity, meaning the company requires significant investment in fixed assets to generate revenue.

All Else the Same, Lower Fixed Asset Turnover Ratio Would