Compute RNOA with Disaggregation Refer to the balance sheet information below for Home Depot. $ millions Feb. 3, 2019 Jan. 28, 2018 Operating assets $9,940 $9,636 Nonoperating assets 419 846 Total assets $10,359 $10,482 Operating liabilities $3,926 $3,777 Nonoperating liabilities 6,874 6,362 Total liabilities $10,800 $10,139 Net sales $25,471 Operating expense before tax 21,815 Net operating profit before tax (NOPBT) 3,656 Other expense 229 Income before tax 3,427 Tax expense 809 Net income $2,618
Compute RNOA with Disaggregation
Refer to the
| $ millions | Feb. 3, 2019 | Jan. 28, 2018 |
|---|---|---|
| Operating assets | $9,940 | $9,636 |
| Nonoperating assets | 419 | 846 |
| Total assets | $10,359 | $10,482 |
| Operating liabilities | $3,926 | $3,777 |
| Nonoperating liabilities | 6,874 | 6,362 |
| Total liabilities | $10,800 | $10,139 |
| Net sales | $25,471 | |
| Operating expense before tax | 21,815 | |
| Net operating profit before tax (NOPBT) | 3,656 | |
| Other expense | 229 | |
| Income before tax | 3,427 | |
| Tax expense | 809 | |
| Net income | $2,618 |
a. Compute return on net operating assets (RNOA). Assume a statutory tax rate of 22%.
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 2018 RNOA.
| Numerator | Denominator | RNOA | |
|---|---|---|---|
| Answer | Answer | ||
| Answer | Answer |
b. Disaggregate RNOA into components of profitability (NOPM) and productivity (NOAT). Assume a statutory tax rate of 22%.
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 2018 NOPM.
| Numerator | Denominator | NOPM | |
|---|---|---|---|
| Answer | Answer | ||
| Answer | Answer |
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 2018 NOAT.
| Numerator | Denominator | NOAT | |
|---|---|---|---|
| Answer | Answer | ||
| Answer | Answer |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
