Homework SourseAlyeska Services Company a division of a major oil company p
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 | $ | 17,400,000 |
| Net operating income | $ | 4,500,000 |
| Average operating assets | $ | 35,200,000 |
Solution
1.margin=net operating income/sale
=(4,500,000/17,400,000)
=25.86%(approx).
2.
turnover=sales/average operating asset
=(17,400,000/35,200,000)
=0.49(approx).
3.
ROI=net operating income/average operating asset
=(4,500,000/35,200,000)
=12.78%(approx).
