Question

Alyeska Services Company, a division of a major oil company, provides various services to the operators...

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 $ 17,600,000  
  Net operating income $ 4,700,000
  Average operating assets $ 36,200,000  
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.)

     

Homework Answers

Answer #1
Answer
Particulars Formula and Calculation
Margin for Alyeska Services Company (Net operating income / Sales) * 100
= (4700000/17600000) * 100
= 26.70%
Turnover for Alyeska Services Company (Sales / Average operating assets) * 100
= (17600000/36200000) * 100
= 48.62%
Return on investment for Alyeska Services Company (Net operating income / Average operating assets) * 100
= (4700000/36200000) * 100
= 12.98%
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