Question 7

Compute RNOA, Net Operating Profit Margin, and NOA Turnover Selected balance sheet and income statement information for Netflix Inc. the world's leading Internet entertainment service, follows. 2018 Net 2017 Net 2018 2018 Operating Operating Company ($ thousands) Ticker Revenue NOPAT Assets Assets Netflix, Inc NFLX $15,794,341 $1,506,681 $11,804,340 $7,258,593 a. Compute return on net operating assets (RNOA). Note: Round percentage to one decimal places (for example, enter 6.7% for 6.6555%). 0 % b. Disaggregate RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT). Confirm that RNOA = NOPM * NOAT. Note: For NOPM and RNOA, round percentage to one decimal places (for example, enter 6.7% for 6.6555%). Note: For NOAT, round amount to two decimal places (for example, enter 6.78 for 6.77555). NOPM X NOAT = RNOA 0% x 0 = 0%