Question
I keep getting answers: 3,5 and 9,11 incorrect and everything else is correct. Compute, Disaggregate, and Interpret RNOA of Competitors Halliburton and Schlumberger compete in
I keep getting answers: 3,5 and 9,11 incorrect and everything else is correct.
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 | $23,995 | $32,815 |
Pretax net nonoperating expense | 653 | 426 |
Net income | 1,657 | 2,177 |
Average operating assets | 23,361 | 67,836 |
Average operating liabilities | 5,888 | 16,499 |
Marginal tax rate | 22% | 19% |
Return on equity | 18.56% | 5.86% |
a. Compute return on net operating assets (RNOA) for each company.
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 | |
---|---|---|---|---|
Answer 1Average assetsAverage equityAverage NOANet incomeNOPATNOPBTTotal revenueNet nonoperating profit before taxTax on operating profitTax shield
| Answer 2Average assetsAverage equityAverage NOANet incomeNOPATNOPBTTotal revenueNet nonoperating profit before taxTax on operating profitTax shield
| |||
HAL | Answer 3
| Answer 4
| ||
SLB | Answer 5
| Answer 6
|
b. Disaggregate RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for each company.
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 | |
---|---|---|---|---|
Answer 7Average assetsAverage equityAverage NOANet incomeNOPATNOPBTTotal revenueNet nonoperating profit before taxTax on operating profitTax shield
| Answer 8Average assetsAverage equityAverage NOANet incomeNOPATNOPBTTotal revenueNet nonoperating profit before taxTax on operating profitTax shield
| |||
HAL | Answer 9
| Answer 10
| ||
SLB | Answer 11
| Answer 12
|
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 | |
---|---|---|---|---|
Answer 13Average assetsAverage equityAverage NOANet incomeNOPATNOPBTTotal revenueNet nonoperating profit before taxTax on operating profitTax shield
| Answer 14Average assetsAverage equityAverage NOANet incomeNOPATNOPBTTotal revenueNet nonoperating profit before taxTax on operating profitTax shield
| |||
HAL | Answer 15
| Answer 16
| ||
SLB | Answer 17
| Answer 18
|
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