Alyeska Services Company, a division of a major oil company, provides various se

Question

Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below:

Required:

1. Compute the margin for Alyeska Services Company. (Round your answer to 2 decimal places.)

2.Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.)

3. Compute the return on investment (ROI) for Alyeska Services Company. (Round your intermediate calculations and final answer to 2 decimal places.)

Sales $ 17,400,000 Net operating income $ 4,500,000 Average operating assets $ 35,200,000

Explanation / Answer

1.margin=net operating income/sale

=(4,500,000/17,400,000)

=25.86%(approx).

2.

turnover=sales/average operating asset

=(17,400,000/35,200,000)

=0.49(approx).

3.

ROI=net operating income/average operating asset

=(4,500,000/35,200,000)

=12.78%(approx).

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