CSX Corporation (CSX) and Union Pacific Corporation (UNP) are major railroads, operating primarily in the eastern and

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CSX Corporation (CSX) and Union Pacific Corporation (UNP) are major railroads, operating primarily in the eastern and western portion of the United States, respectively. YRC Worldwide Inc. (YRCW) is one of the largest trucking companies in the United States. The sales and total assets (in millions) for a recent year for each company are as follows:

Union Pacific $19,941 YRC CSX Total sales Total assets: Beginning of year End of year $4,698 $11,069 54,600 55,718 34,74


a. Compute the asset turnover ratio for each company. Round to two decimal places.
b. Which of the two railroad companies is more efficient in generating revenues from its assets?
c. How does YRC€™s asset turnover ratio compare to the two railroads? Why?

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Corporate Financial Accounting

ISBN: 9781337398169

15th Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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