Compute and Compare ROE, ROA, and RNOA Selected balance sheet and income statement information for Oracle Corporation
Question:
Compute and Compare ROE, ROA, and RNOA
Selected balance sheet and income statement information for Oracle Corporation follows. (Perform the required computations from the perspective of an Oracle shareholder.
$ millions
May 31, 2015 May 31, 2014
Operating assets $62,090 $57,002
Nonoperating assets $54,368 $38,819
Total assets $116,458 $95,821
Operating liabilities $20,180 $19,055
Nonoperating liabilities $41,958 $24,097
Total liabilities $62,138 $43,152
Total Oracle stockholders' equity $54,320 $52,669
Total revenues $38,559
Operating income before tax $13,993
Nonoperating expense before tax $1,037
Tax expense $3,498
Net income $9,458
a. Compute return on equity (ROE)
Round answer totwo decimal places(ex: 0.12345 = 12.35%)
Answer
%
b. Compute return on net assets (ROA)
Round answers totwo decimal places(percentage ex: 0.12345 = 12.35%)
Answer
%
c. Compute return on net operating assets (RNOA)
Round answers totwo decimal places(percentage ex: 0.12345 = 12.35%)
Answer
%
Expert Answer:
