Computation of Margin |
Margin = Net operating income/sales |
(6000000/17000000)=35.29% Rounded Off |
Computation of Turnover |
Turnover = sales/Average operating assets |
(17000000/35300000)= 0.48 times Rounded Off |
Computation of ROI |
ROI= MarginX Turnover |
(35.29%X 0.48)=16.94%n ( Rounded off) |
or |
ROI= Net Operating Income / Average Operating Asset |
$6000000/$35300000)=16.997% |
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Alyeska Services Company, a division of a major oil company provides various services to the operators...
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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
$
18,600,000
Net operating income
$
5,100,000
Average operating assets
$
35,500,000
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...
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 $ 18,800,000 Net operating income $ 5,300,000 Average operating assets $ 36,500,000 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...
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