Question 1 Incorrect Mark 0.00 out of 6.00 P Flag question 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 $25,195 $34,456 Pretax net nonoperating expense 686 447 Net income 1,491 1,959 Average operating assets 21,025 61,052 Average operating liabilities 6,182 17,324 Marginal tax rate 22% 19% Return on equity 18.56% 5.86% a. Compute 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. Do not round until your final answer. Round answers to two decimal places (percentage example: 0.12345 = 12.35%). HAL SLB RNOA 9 x 96 NOPM % x NOAT X X Check Question 3 Incorrect Mark 0.00 out of 5.00 P Flag question Apply DuPont Disaggregation of ROE Selected balance sheet and income statement information for Home Depot follows. $ millions Jan. 31, 2016 Feb. 01, 2015 Total assets $43,074 $40,471 Total liabilities 36,338 30,729 Sales 89,464 Net income 6,873 Round answers to two decimal places (ex: 0.12345 = 12.35%) a. Compute ROE and disaggregate the ratio into its DuPont components of ROA and financial leverage. ROE: 20.5 X % ROA: 0 X % Financial leverage: 0 X b. Disaggregate ROA in to profitability and productivity components. Profit margin 0 X % Asset turnover 0 X Check Question 2 Not complete Marked out of 1.00 Flag question Compute ROE Selected balance sheet and income statement information for Home Depot follows. $ millions Jan. 31, 2016 Feb. 01, 2015 Total assets $42,824 $40,221 Total liabilities 36,303 30,694 Sales 88,999 Net income 7,158 Compute the return on equity for the year ended January 31, 2016. Round answer to two decimal places (ex: 0.12345 = 12.35%) 0 % Check Question 4 Not complete Marked out of 2.00 P Flag question Compute Net Operating Assets Selected balance sheet and income statement information for Home Depot follows. $ millions Operating assets Nonoperating assets Total assets Operating liabilities Nonoperating liabilities Total liabilities Sales Net operating profit before tax (NOPBT) Nonoperting expense before tax Tax expense Net income Jan. 31, 2016 Feb. 01, 2015 $40,583 $38,473 2,241 1,748 42,824 40,221 15,018 13,527 21,340 17,222 36,358 30,749 88,944 12,024 778 4,208 7,038 Compute net operating assets for the years ended January 31, 2016 and February 1, 2015. 2016 NOA $ 0 2015 NOA $ 0 Check Question 5 Incorrect Mark 0.00 out of 2.00 P Flag question Compute Net Operating Profit after Tax Selected balance sheet and income statement information for Home Depot follows. $ millions Jan. 31, 2016 Feb. 01, 2015 Operating assets $40,583 $38,473 Nonoperating assets 2,241 1,748 Total assets 42,824 40,221 Operating liabilities 15,018 13,527 Nonoperating liabilities 21,285 17,167 Total liabilities 36,303 30,694 Sales 88,999 Net operating profit before tax (NOPBT) 12,024 Nonoperting expense before tax 778 Tax expense 4,088 Net income 7,158 Assume a statutory tax rate of 37%. Round answers to the nearest whole number. a. Compute NOPAT using the formula: NOPAT = Net income + NNE $ 0 X b. Compute NOPAT using the formula: NOPAT = NOPBT Tax on operating profit $ 7,648.16 x Check
