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 $ 18,000,000 Net operating income $ 5,900,000 Average operating assets $ 35,200,000

Explanation / Answer

1. Margin = Net Operating Income / Sales *100

= 5900000 / 18000000 *100

= 32.78%

2. Turnover = Sales / Average Operating Assets

= 18000000 / 35200000

= 0.51

3. ROI =  Net Operating Income / Average Operating Assets *100

= 5900000 / 35200000 *100

= 16.76%

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