Question

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

Segment Company Motor carriers YRC Worldwide Inc. (YRCW) Railroads Union Pacific Corporation (UNP) Transportation Arrangement C.H. Robinson Worldwide Inc. (CHRW) YRC Worldwide Union Pacific C.H. Robinson Worldwide Sales $4,832 $21,813 $13,470 Average long-term operating assets 1,016 47,569 1,092
a. Determine the asset turnover for all three companies. Round to two decimal places.
YRC Worldwide ________
Union Pacific _______
C.H. Robinson Worldwide ______
b. Based on your calculations above which of the following statements are correct.

Answer 1

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.

Step-by-step 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