Question

Alyeska Services Company, a division of a major oil company, provides various services to th operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales Net operating income Average operating assets $ 19,000,000 $ 5,400,000 $ 36,800,000 R 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. Turnover 3. ROI

Answer 1

1
Net Operating income	5400000
Divide by Sales	19000000
Margin	28.42%
2
Sales	19000000
Divide by Average Operating Assets	36800000
Turnover	0.52
3
Margin	28.42%
X Turnover	0.52
ROI	14.78%	or 14.67%