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FedEx and UPS: Fbxed asset turnover ratio FedEx Corporation and United Parcel Service, Inc. compete In the package delivery b
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Answer #1
a
Fixed asset turnover ratio = Sales/Average book value of fuxed assets
Fixed asset turnover ratio:
FedEx 2.4 =45567/19017
UPS 3.1 =55438/17927
b
UPS appears more efficient in using fixed assets
c
The fixed asset turnover is a measure of how efficiently revenue is generated from underlying fixed assets. UPS is making a more efficient use of its fixed assets.
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