3 Asset turnoverThree major segments of the transportation industry are motor carriers, such as YRC Worldwide (YRCW); railroads, such as UnionPacific (UNP); and transportation logistics services, such as C.H. Robinson Worldwide, Inc. (CHRW). Financial statement informationfor these three companies follows (in thousands):SalesYRC WorldwideYRC$4,871,200$21,708,000$15,309,508Average total assets3,448,70060,410,0004,534,236a. Determine the asset turnover for all three companies. Round your answers to one decimal place.Union PacificUnion PacificC.H. RobinsonC.H. Robinson Worldwide<b. The ratio of sales to assets measures the number of sales dollars earned for each dollar of assets. The greater the number of salesdollars earned for every dollar of assets, theefficient a firm is in using assets.

The assets turnover ratio indicates the efficiency of the firm in generating revenue by using…

Asset turnover Three major segments of the transportation industry are motor carriers, such as YRC Worldwide (YRCW); railroads, such as Union Pacific (UNP); and transportation logistics services, such as C.H. Robinson Worldwide, Inc. (CHRW). Financial statement information for these three companies follows (in thousands): YRC Sales $4,871,200 $21,708,000 Average total assets 3,448,700 60,410,000 a. Determine the asset turnover for all three companies. Round your answers to one decimal place. YRC Worldwide Union Pacific Union Pacific C.H. Robinson $15,309,508 4,534,236 C.H. Robinson Worldwide b. The ratio of sales to assets measures the number of sales dollars earned for each dollar of assets. The greater the number of sales dollars earned for every dollar of assets, the efficient a firm is in using assets.

Asset turnover Three major segments of the transportation industry are motor carriers, such as YRC Worldwide (YRCW); railroads, such as Union Pacific (UNP); and transportation logistics services, such as C.H. Robinson Worldwide, Inc. (CHRW). Financial statement information for these three companies follows (in thousands): YRC Sales $4,871,200 $21,708,000 Average total assets 3,448,700 60,410,000 a. Determine the asset turnover for all three companies. Round your answers to one decimal place. YRC Worldwide Union Pacific Union Pacific C.H. Robinson $15,309,508 4,534,236 C.H. Robinson Worldwide b. The ratio of sales to assets measures the number of sales dollars earned for each dollar of assets. The greater the number of sales dollars earned for every dollar of assets, the efficient a firm is in using assets.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 16E

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Compare Fed Ex and UPS FedEx Corporation (FDX) and United Parcel Service, Inc. (UPS) compete in the package delivery business. The major fixed assets for each business include aircraft, sorting and handling facilities, delivery vehicles, and information technology. The sales and average book value of fixed assets reported on recent financial statements for each company were as follows: a. Compute the fixed asset turnover ratio for each company. Round to one decimal place. b. Which company appears more efficient in using fixed assets? c. Interpret the meaning of the ratio for the more efficient company.
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Hangover Pills, Inc. has current assets of $70,000 and net fixed assets of $400,000. Thefirm's sales are $800,000. All assets are classified as being either "current assets" or"fixed assets." What is Hangover's total asset turnover?
The Global Products Corporation has three subsidiaries. Medical Supplies Heavy Machinery Electronics Sales $20,040,000 $5,980,000 $4,730,000 Net Income (after taxes) 1,700,000 592,000 402,000 Assets 8,340,000 8,760,000 3,570,000 If the $8,760,000 investment in the heavy machinery division is sold off and redeployed in the medical supplies subsidiary at the same rate of return on assets currently achieved in the medical supplies division, what will be the new return on assets for the entire corporation?