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 | $ | 17,400,000 |
| Net operating income | $ | 5,900,000 |
| Average operating assets | $ | 37,000,000 |
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
Solution 1:
| Profit Margin | ||||||
| Choose Numerator | / | Choose denomerator | = | Profit Margin | ||
| Details | Amount | Details | Amount | |||
| Operating Income | $5,900,000.00 | Sales | $17,400,000.00 | 33.91% | ||
Solution 2:
| Turnover | ||||||
| Choose Numerator | / | Choose denomerator | = | Investment Turnover | ||
| Details | Amount | Details | Amount | |||
| Sales | $17,400,000.00 | Average operating assets | $37,000,000.00 | 0.47 | ||
Solution 3:
| Return on Investment | ||||
| Profit Margin | * | Investment Turnover | = | Return on Investment |
| 33.91% | 0.47 | 15.95% | ||
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