Selected balance sheet and income statement information for the clothing retailers Nordstrom Inc. and Limited Brands Inc. follows.

a. Compute the 2013 return on net operating assets (RNOA) for each company.

b. Disaggregate RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for each company.

c. Discuss any differences in these ratios for each company. Identify the factor(s) that drives the differences in RNOA observed from your analyses in parts \(a\) and \(b\).

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Company ($ millions) Nordstrom.... Limited Brands....... Ticker JWN LTD 2013 Sales $11,762 10,459 2013 NOPAT $836 937 2013 Net Operating Assets $3,759 2,690 2012 Net Operating Assets $3,726 2,741