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E4-31. Compute and Interpret RNOA, Profit Margin, and Asset Turnover of Competitors Selected balance sheet and income statement information for drug store retailers CVS Health
E4-31. 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 Operating Assets 2015 Sales Company ($ millions) 2014 Net Operating Assets 2015 NOPAT Ticker CVS Health ........... CVS Walgreens Boots Alliance WBA $153,290 103,444 $5,758 3,642 $62,159 42,683 $48,338 22,461 a. Compute the 2015 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. c. Discuss any differences in these ratios for each company
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