Question
isaggregate Traditional DuPont ROE Selected balance sheet and income statement information for Oracle Corporation follows. (Perform the required computations from the perspective of an Oracle
isaggregate 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 |
Nonoperating assets | 54,368 | 38,819 |
Total assets | 110,903 | 90,266 |
Operating liabilities | 19,847 | 18,722 |
Nonoperating 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 | |
Nonoperting expense before tax | 1,037 | |
Tax expense | 2,896 | |
Net income | 9,938 |
a. Compute return on equity (ROE) Round answer to two decimal places (ex: 0.12345 = 12.35%) ROE Answer% b. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage (FL). Rouand answers to two decimal places (percentage ex: 0.12345 = 12.35%) ROA Answer% FL Answer c. Calculate the profitability and productivity components of ROA. Rouand answers to two decimal places (percentage ex: 0.12345 = 12.35%) PM Answer% AT Answer
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