A fixed asset turnover ratio of.72 means that:

A) For every $1 in total assets, a firm can generate $0.72 in net income.
B) For every $1 in net fixed assets, a firm can generate $0.72 in net income.
C) For every $1 in total assets, a firm can generate $0.72 in sales.
D) For every $1 in net fixed assets, a firm can generate $0.72 in sales.
E) For every $1 in net fixed assets, a firm can obtain $0.72 in debt.

Fixed Asset Turnover Ratio

A financial metric that measures how efficiently a company uses its fixed assets to generate sales.

Net Income

The financial gain a company realizes after all deductions, including taxes and costs, are taken from revenue.

Total Assets

The sum of all assets owned by an individual or organization, including cash, investments, property, and other valuables, representing the total resources available for use in generating future income.