A Firm Has a Lower Asset Turnover Ratio Than the Industry

Multiple Choice

A firm has a lower asset turnover ratio than the industry average, which implies

A) the firm has a lower P/E ratio than other firms in the industry.
B) the firm is less likely to avoid insolvency in the short run than other firms in the industry.
C) the firm is less profitable than other firms in the industry.
D) the firm is utilizing assets less efficiently than other firms in the industry.
E) the firm has lower spending on new fixed assets than other firms in the industry.