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: Sales Net operating income Average operating assets s 18,800,000 35,700,000 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.) 1. Margin 2. Turnover 3. ROI

Explanation / Answer

1. Margin = Net Operating Income / Sales *100

= $ 5,300,000 / $ 18,800,000 *100

= 28.19%

2. Turnover = Sales / Average Operating Assets

= $ 18,800,000 / $ 35,700,000 *100

= 52.67%

3. ROI = Net Operating Income / Average Operating Assets

= $ 5,300,000 /  $ 35,700,000 *100

= 14.85%

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