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Return on investment (ROI)

Tundra 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 $18,000,000
Net operating income $5,400,000
Average operating assets $36,000,000

Compute the margin for Tundra Services Company.
Compute the turnover for Tundra Services Company.
Compute the return on investment (ROI) for Tundra Services Company.

Solution Preview

Tundra 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 $18,000,000
Net operating income $5,400,000
Average operating ...

Solution Summary

This provides the steps to calculate the margin, turnover and return on investment (ROI)

$2.19