Compute and Interpret RNOA, Profit Margin, and Asset Turnover of Competitors

Selected balance sheet and income statement information for drug store retailers

CVS Health Corp. and Walgreens Boots Alliance follows.

2015 Net 2014 Net

2015 Operating Operating

Company ($ millions) Ticker 2015 Sales NOPAT Assets Assets

CVS Health CVS $153,290 $5,758 $62,159 $48,338

Walgreens Boots Alliance WBA 103,444 3,642 42,683 22,461

a. Compute the 2015 return on net operating assets (RNOA) for each company.

Round answers to two decimal places (ex: 0.12345 = 12.35%)

RNOA

CVS Health

Answer

0.00 points out of 1.00

Walgreens

Answer

0.00 points out of 1.00

%

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

Round answers to two decimal places (ex: 0.12345 = 12.35%)

NOPM NOAT

CVS HealthAnswer

0.00 points out of 1.00

%Answer

0.00 points out of 1.00

WalgreensAnswer

0.00 points out of 1.00

%Answer