Computing NOPAT, NOPM and RNOA LVMH Mot Hennessy Louis Vuitton SE (LVMH) is a French multinational luxury goods conglomerate headquartered in Paris. The following information is selected from their 2017 annual report.

( thousands)	2017	2016
Revenue	42,636	37,600
Operating income	8,113	6,904
Net interest expense and other nonoperating expense	179	432
Net income	5,616	4,363
Operating assets	67,246	58,504
Operating liabilities	26,714	24,340

LVMH has an income tax rate of approximately 30%

a. Compute LVMHs net operating profit after taxes (NOPAT) for 2017 and 2016. Round answers to the nearest whole number.

2016	Answer
2017	Answer

b. Compute LVMHs net operating profit margin (NOPM) for each year. Round answers to one decimal place. (Ex: 0.2345 = 23.5%)

2016	Answer
2017	Answer

c. Compute LVMHs return on net operating assets (RNOA) for 2017. Round answers to one decimal place. (Ex: 0.2345 = 23.5%)

2017

Answer