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
% b. Compute return on net assets (ROA) Round answers to two decimal places (percentage ex: 0.12345 = 12.35%) Answer
% c. Compute return on net operating assets (RNOA) Round answers to two decimal places (percentage ex: 0.12345 = 12.35%) Answer
%
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