Exercise 11-1 Compute the Return on Investment (ROI) LO11-1 Alyeska Services Com

Question

Exercise 11-1 Compute the Return on Investment (ROI) LO11-1 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 $18,800,000 $ 6,400,000 $35,400,000 Required 1. Compute the margin for Alyeska Services Company. (Round your answer to 2 decimal places.) argin 2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.) urnover

Explanation / Answer

Answer 1 Margin Net Profit/sales *100 '= 6400000/18800000*100 Margin '= 34.04% Answer 2 Turnover ' =Sales Turnover '= 18800000 Answer 3 ROI ,= Net Income/ Investment ' = 6400000/35400000*100 ROI ' = 18.08%

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