Question

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.

Answer 1

Answer:

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