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 | $ | 7,500,000 |
| Net operating income | $ | 600,000 |
| Average operating assets | $ | 5,000,000 |
Required:
1. Compute the margin for Alyeska Services Company.
2. Compute the turnover for Alyeska Services Company. (Round your answer to 1 decimal place.)
3. Compute the return on investment (ROI) for Alyeska Services Company. (Do not round intermediate calculations.)
Solution 1:
| Profit Margin | ||||||
| Choose Numerator | / | Choose denomerator | = | Profit Margin | ||
| Details | Amount | Details | Amount | |||
| Operating Income | $600,000.00 | Sales | $7,500,000.00 | 8.00% | ||
Solution 2:
| Turnover | ||||||
| Choose Numerator | / | Choose denomerator | = | Investment Turnover | ||
| Details | Amount | Details | Amount | |||
| Sales | $7,500,000.00 | Average operating assets | $5,000,000.00 | 1.50 | ||
Solution 3:
| Return on Investment | ||||
| Profit Margin | * | Investment Turnover | = | Return on Investment |
| 8.00% | 1.50 | 12.00% | ||
Get Answers For Free
Most questions answered within 1 hours.