Question

Walmart - 2.48                  Verison - 0.50             United Health - 1.54

United Technologies - 0.64                           Procter and Gamble - 0.58

Pfizer - 0.31                      Nike - 1.54                   Microsoft - 0.41

Merck - 0.44                      McDonalds - 0.70 Jonson and Johnson - 0.51

Intel - 0.53                        IBM - 0.65                    Home Depot - 2.31

Disney - 0.59                     Coca-Cola - 0.40         Cisco - 0.57

Chevron - 0.52                  Caterpillar Inc. - 0.60   Boeing Co. - 1.02

Apple Inc. - 0.66               3M Co - 0.89

3. Which types of companies tend to have higher rates of asset turnover?

4. What do you notice? Which company doesn’t seem to fit with the others?

5. What trends do you notice among related industries? Does anything surprise you?

Answer 1

3. The highest asset turnover rates belong to Walmart and Home Depot. They are both retail chain stores spread all over the United States of America.

4. Chevron, being an energy producing company does not fit in with the others. All other companies listed above have one or more competitors among the list. But Chevron is the only energy company in the list.

5. Asset turnover ratio tends to be similar among related industries. However, it is surprising to notice that the asset turnover of United Technology is only 0.64 while that of Boeing Co is 1.02. Since they are both aircraft manufacturing companies, one would expect them to have similar asset turnover ratios.