Main.domvoker assignmentsitakeAssignmentSes eBook Calculator Asset turnover Thre
ID: 2329106 • Letter: M
Question
Main.domvoker assignmentsitakeAssignmentSes eBook Calculator Asset turnover Three major segments of the transportation industry are motor carriers, such as Atlantic: rail shown as follows (in thousands of dollars): Atlantic Pacific Mediterranean Sales Average total assets a. Determine the asset turnover for all three companies, Round to one decimal place. Atlantic Pacific Mediterranean b. The ratio of sales to assets measures the number of sales dollars earned for each dollar of $2,945,088$2.671 248 $1,536,660 920,3401405.920 512.220 a. Divide sales by average total assets. b. Consider the differences among the three compar es Learning Objective s.Explanation / Answer
a. Asset turnover = Sales / Average total assets
Atlantic:
Asset turnover = $2,945,088 / $920,340 = 3.2
Pacific:
Asset turnover = $2,671,248 / $1,405,920 = 1.9
Mediterranean:
Asset turnover = $1,536,660 / $512,220 = 3.0