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BusinessCourse Return to course Mod 4 Homework Navigation 1 2 3 Finish attempt... Question 3 Not complete Marked out of 2.50 Flag question Compute NOPAT
BusinessCourse Return to course Mod 4 Homework Navigation 1 2 3 Finish attempt... Question 3 Not complete Marked out of 2.50 Flag question Compute NOPAT Selected income statement information for 2018 is presented below for Home Depot Inc. and Lowe's Comp Average Net Operating Company ($ millions) Ticker Sales NOPBT Home Depot Lowe's HD LOW $108,203 $15,530 71,309 4,018 Pretax Net Nonoperating Tax Expense Expense $974 $3,435 Assets $25,217 624 1,080 20,326 a. Compute the following measures for both companies. Measure 1. Net operating profit (NOPAT) 2. Return on net operating assets (RNOA) 3. Net operating profit margin (NOPM) 4. Net operating asset turnover (NOAT) Rounding Instructions Home Depot Lowe's Round to nearest whole dollar (millions) $ Round percentage to one decimal place Round percentage to one decimal place Round amount to two decimal places $ 96 96 96 96 b. Indicate which of these two companies: 1. Is more profitable (in $s). 2. Produces the higher profit margin (in 9). 3. Uses its NOA more efficiently. 4. Produces the higher return on NOA. Check
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