Question
Three major segments of the transportation industry are motor carriers such as Atlantic Worldwide, railroads such as Pacific, and transportation logistics services such as Mediterranean.
Three major segments of the transportation industry are motor carriers such as Atlantic Worldwide, railroads such as Pacific, and transportation logistics services such as Mediterranean. Recent financial statement information for these three companies follows (in thousands):
Atlantic | Pacific | Mediterranean | ||||
Sales | $1,603,350 | $385,140 | $1,825,730 | |||
Average total assets | 763,500 | 1,283,800 | 445,300 |
a. Determine the asset turnover for all three companies. Round your answers to two decimal places.
Atlantic | fill in the blank 1 |
Pacific | fill in the blank 2 |
Mediterranean | fill in the blank 3 |
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 more efficient a firm is in using assets.
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