Compute, Disaggregate, and Interpret RNOA of Competitors Halliburton and Schlumberger compete in the oil field services sector. Refer to the following 2018 financial data for the two companies to answer the requirements.

$ millions HAL SLB

Total revenue $21,596 $29,534

Pretax net nonoperating expense 588 383

Net income 1,740 2,286

Average operating assets 24,529 71,228

Average operating liabilities 5,299 14,849

Marginal tax rate 22% 19%

Return on equity 18.56% 5.86%

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

b. Disaggregate RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for each company. Do not round until your final answer. Round answers to two decimal places (percentage example: 0.12345 = 12.35%).

HAL SLB

RNOA Answer Answer

NOPM Answer Answer

NOAT Answer Answer