Disaggregate Traditional DuPont ROE

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 $56,535 $51,447

Non-operating assets 54,368 38,819

Total assets 110,903 90,266

Operating liabilities 19,847 18,722

Non-operating liabilities 41,958 24,097

Total liabilities 61,805 42,819

Total Oracle stockholders' equity 48,663 46,878

Total revenues 38,226

Operating income before tax 13,871

Non-operating expense before tax 1,037

Tax expense 2,896

Net income9,938

a. Compute return on equity (ROE)

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

ROE Answer

0.00 points out of 1.00

%

b. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage (FL).

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

ROA Answer

0.00 points out of 1.00

%

FL Answer

0.00 points out of 1.00

c. Calculate the profitability and productivity components of ROA.

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

PM Answer

0.00 points out of 1.00

%

AT Answer

0.00 points out of 1.00