Three major segments of the transportation industry are motor carriers, such as YRC Worldwide; railroads, such as Union Pacific; and transportation logistics services, such as C. H. Robinson Worldwide, Inc. Recent financial statement information for these three companies is shown as follows (in thousands of dollars) : YRC Worldwide Union Pacific C. H. Robinson Worldwide Inc. Sales $4,334,640 $16,965,000 $9,274,305 Average total assets 2,812,504 42,636,000 1,914,974 a. Determine the asset turnover for all three companies. Round to one decimal place.

Question

Business

Eliza Munoz

15 July, 21:19

Three major segments of the transportation industry are motor carriers, such as YRC Worldwide; railroads, such as Union Pacific; and transportation logistics services, such as C. H. Robinson Worldwide, Inc. Recent financial statement information for these three companies is shown as follows (in thousands of dollars) : YRC Worldwide Union Pacific C. H. Robinson Worldwide Inc. Sales $4,334,640 $16,965,000 $9,274,305 Average total assets 2,812,504 42,636,000 1,914,974 a. Determine the asset turnover for all three companies. Round to one decimal place.

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Sydney Mathews · Answer 1

The assets turnover for the three companies are as follows:

YRC Worldwide Union 1.54

Pacific C. H. 0.40

Robinson Worldwide Inc 4.84

Asset turnover implies how much sales generated by an organization from $1 of asset deployed to the business.

Judging from the above, Robinson Worldwide Inc was the most effective in using its assets to generate sales. It generated $4.84 in sales for every $1 of asset used.

Explanation:

YRC Worldwide Union Pacific C. H. Robinson Worldwide Inc

Asset turnover=net sales/average total assets

Sales 4,334,640.00 16,965,000.00 9,274,305.00

Average Total Assets 2,812,504.00 42,636,000.00 1,914,974.00

Asset turnover=net sales/average total assets

1.54 0.40 4.84