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Which firms do you expect to have particularly high turnover

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Which of the following types of firms do you expect to have particularly high or low asset turnover? Explain why.

Supermarket

Pharmaceutical Company

Jewelry Retailer

Steel Company

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Solution Summary

Your tutorial is 216 words (no reference) and explains why two firms would likely have high asset turnover and two would have low asset turnover. Asset turnover is defined and explained.

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First, asset turnover = sales / average assets. And "high turnover" means the amount is higher than "low turnover."

Supermarket
Supermarkets have perishable items and mostly rented retail space. So, I would expect a high asset turnover because of the low assets relative to high sales volume.

Pharmaceutical Company
Pharmaceutical companies are heavily invested in research and ...

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  • MSc, University of Virginia
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