Question

Three major transportation segments and a major company within each segment are as follows:

Answer 1

Answer:

Segment Company Motor

a) The asset turnover ratios for all three companies. Round to two decimal places are:

YRC Worldwide ___4.76_____

Union Pacific ___0.46____

C.H. Robinson Worldwide __12.34____

b) Based on the Asset Turnover Ratio computed above, Transportation Arrangement is the most efficient.  It outperformed YRC Worldwide and Union Pacific Corporation in deploying assets to generate revenue.  The performance of Union Pacific Corporation in comparison is very abysmal.

Explanation:

a) Data and Calculations:

                              YRC Worldwide   Railroads Union         Transportation    

                                 Inc. (YRCW)    Pacific Corporation    Arrangement C.H.

                                                                  (UNP)

Sales                              $4,832                $21,813                      $13,470

Average long-term

operating assets             1,016                47,569                           1,092

Asset turnover = Sales/Average operating assets

=                                        4.76                  0.46                            12.34