Question

Alyeska Services Company, a division of a major oll company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: 6 Sales $18,800,000 Net operating income Average operating assets $ 5,900,000 $35,600,000 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. Tumover % 3. ROI %

Answer 1

1
Net Operating income	5900000
Divide by Sales	18800000
Margin	31.38%
2
Sales	18800000
Divide by Average Operating Assets	35600000
Turnover	0.53
3
Margin	31.38%
X Turnover	0.53
ROI	16.63%	or 16.57%