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 Sales Net operating income Average operating assets $18,700,000 $ 4,900,000 $35,500,000 Required: 1. Compute the margin for Alyeska Services Company, (Round your answer to 2 decimal places.) af 2. Compute the turnover for Alyeska Services Company (Round your answer to 2 decimal places.) unover 3. Compute the return on investment (ROl) for Alyeska Services Company. (Round your intermediate calculations and final answer to 2 decimal places.) ROI Type here to search

Explanation / Answer

1. Margin = Net Operating Income / Sales *100

= $ 4,900,000 / $ 18,700,000 *100

= 26.20%

2. Turnover = Sales / Average Operating Assets

= $ 18,700,000 / $ 35,500,000

= 0.53

3. ROI = Net Operating Income / Average Operating Assets

= $ 4,900,000 / $35,500,000 *100

= 13.80%

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