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 follows (in thousands): YRC Union Pacific C.H. Robinson Sales $4,832,400 $21,813,000 $13,476,084 Average total assets 1,939,800 53,486,000 3,199,348 a. Determine the asset turnover for all three companies. Round to one decimal place. YRC Union Pacific C.H. Robinson

Answer 1

Answer and Explanation:

The formula that is to be used to determine the asset turnover is shown below:

Asset turnover is

= Net sales ÷ Average total assets

For YRC

= $4,832,400 ÷ $1,939,800

= 2.5 times

For Union Pacific

= $21,813,000 ÷ $53,486,000

= 0.4 times

For C.H robinson

= $13,476,084 ÷ $3,199,348

= 4.2 times

We simply applied the above formula