Fixed-asset turnover ratio; Nvidia
Response to the following problem:
Nvidia Corporation, a global technology company located in Santa Clara, California, reported the following information in its 2014 financial statements ($ in thousands):
2014 2013
Balance sheets
Property, plant, and equipment (net) $582,740 $576,144
Income statement
Net sales for 2014 $4,130,162
Required:
1. Calculate the company's 2014 fixed-asset turnover ratio.
2. How would you interpret this ratio?