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
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 to two decimal places (ex: 0.12345 = 12.35%) Answer 17.68 % b. Compute return on net assets (ROA) Round answers to two decimal places (percentage ex: 0.12345 = 12.35%) Answer 8.91 % c. Compute return on net operating assets (RNOA) Round answers to two decimal places (percentage ex: 0.12345 = 12.35%) Answer 23.7 %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started