Answer:
1. 34.43%
2. 0.50
3. 17.31%
Explanation:
Alyeska services company has a sale of $18,300,000
The net operating income is $6,300,000
The average operating assets is $36,400,000
(1) The margin can be calculated as follows
Margin= net operating income/sales ×100
= $6,300,000/18,300,000×100
= 0.34426×100
= 34.43%
(2) The assets turnover ratio can be calculated as follows
= Sales/Average operating assets
= $18,300,000/$36,400,000
= 0.50
(3) The Return on investment ROI can be calculated as follows
= Net operating income/Average Operating assets × 100
= $6,300,000/$36,400,000 × 100
= 0.17307×100
= 17.31%
Hence the margin, assets turnover ratio and ROI are 34.43%, 0.50 and 17.31% respectively
