Compute RNOA, Net Operating Profit Margin, and NOA Turnover for Competitors

Selected balance sheet and income statement information for the fiscal year ended February 2, 2019, for Abercrombie & Fitch Co. and TJX Companies Inc., clothing retailers in the highend and valuepriced segments, respectively, follows.

				Current	Prior
				Year Net	Year Net
				Operating	Operating
Company ($ millions)	Ticker	Sales	NOPAT	Assets	Assets
Abercrombie & Fitch	ANF	$3,809.1	$306.4	$1,011.3	$1,096.3
TJX Companies	TJX	$39,191.9	$3,285.7	$4,471.0	$4,333.3

Compute the following ratios for both companies for the fiscal year ended February 2, 2019.

a. Return on net operating assets (RNOA)

Note: 1. Select the appropriate numerator and denominator used to compute RNOA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute RNOA.

	Company	Numerator	Denominator	RNOA
		AnswerAverage assetsAverage equityAverage NOANet incomeNOPATNOPBTRevenueTax expenseTax on operating profitTax shield	AnswerAverage assetsAverage equityAverage NOANet incomeNOPATNOPBTRevenueTax expenseTax on operating profitTax shield
	Abercrombie & Fitch	Answer	Answer
	TJX Companies	Answer	Answer

b. Net operating profit margin (NOPM)

Note: 1. Select the appropriate numerator and denominator used to compute NOPM from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute NOPM.

	Company	Numerator	Denominator	NOPM
		AnswerAverage assetsAverage equityAverage NOANet incomeNOPATNOPBTRevenueTax expenseTax on operating profitTax shield	AnswerAverage assetsAverage equityAverage NOANet incomeNOPATNOPBTRevenueTax expenseTax on operating profitTax shield
	Abercrombie & Fitch	Answer	Answer
	TJX Companies	Answer	Answer

c. Net operating asset turnover (NOAT)

Note: 1. Select the appropriate numerator and denominator used to compute NOAT from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute NOAT.

	Company	Numerator	Denominator	NOAT
		AnswerAverage assetsAverage equityAverage NOANet incomeNOPATNOPBTRevenueTax expenseTax on operating profitTax shield	AnswerAverage assetsAverage equityAverage NOANet incomeNOPATNOPBTRevenueTax expenseTax on operating profitTax shield
	Abercrombie & Fitch	Answer	Answer
	TJX Companies	Answer	Answer