Answer:
The margin for Alyeska Services Company: 29.48
The turnover for Alyeska Services Company: 49.01
The return on investment for Alyeska Services Company: 14.45
Explanation:
Please find the below for detailed explanation and calculations:
We have the formula for calculating the ratios as require in the question: Margin = Net operating income/ Sales ; Turnover = Sales/Average operating assets; Return on investment = Net operating income/ Average operating assets.
Thus, we have:
The margin for Alyeska Services Company is calculated as Net operating income/ Sales or 5,100,000/17,300,000 = 29.48%;
The turnover for Alyeska Services Company is calculated as Sales/Average operating assets or 17,300,000/35,300,000 = 49.01%;
The return on investment for Alyeska Services Company is calculated as Net operating income/ Average operating assets: 5,100,000/35,300,000 = 14.45%.
Hope this is helpful to you.
