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:

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

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:

Explanation / Answer

1) Margin = Net operating income / Sales

= $5,000,000 / $18,200,000

= 27.47%

2) Turnover = Sales / Average operating assets

= $18,200,000 / 35,600,000

= 0.51

3) ROI = Net operating income / Average operating assets

= $5,000,000 / 35,600,000

= 14.04%

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