Computing NOPAT, NOPM and RNOA LVMH Moët Hennessy Louis Vuitton SE (LVMH) is a French multinational luxury goods conglomerate headquartered in Paris. The following information is selected from their 2017 annual report. (€ thousands) Revenue Operating income Net interest expense and other nonoperating expense Net income Operating assets Operating liabilities LVMH has an income tax rate of approximately 30% a. Compute LVMH's net operating profit after taxes (NOPAT) for 2017 and 2016. Round answers to the nearest whole number. 2016 € 2017 € 2017 2016 42,636 37,600 8,113 6,904 179 432 5,616 4,363 67,246 58,504 26,714 24,340 b. Compute LVMH's net operating profit margin (NOPM) for each year. Round answers to one decimal place. (Ex: 0.2345= 23.5%) %6 2016 2017 c. Compute LVMH's return on net operating assets (RNOA) for 2017. Round answers to one decimal place. (Ex: 0.2345 = 23.5%) 2017

Computing NOPAT, NOPM and RNOA LVMH Moët Hennessy Louis Vuitton SE (LVMH) is a French multinational luxury goods conglomerate headquartered in Paris. The following information is selected from their 2017 annual report. (€ thousands) Revenue Operating income Net interest expense and other nonoperating expense Net income Operating assets Operating liabilities LVMH has an income tax rate of approximately 30% a. Compute LVMH's net operating profit after taxes (NOPAT) for 2017 and 2016. Round answers to the nearest whole number. 2016 € 2017 € 2017 2016 42,636 37,600 8,113 6,904 179 432 5,616 4,363 67,246 58,504 26,714 24,340 b. Compute LVMH's net operating profit margin (NOPM) for each year. Round answers to one decimal place. (Ex: 0.2345= 23.5%) %6 2016 2017 c. Compute LVMH's return on net operating assets (RNOA) for 2017. Round answers to one decimal place. (Ex: 0.2345 = 23.5%) 2017

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Computing NOPAT, NOPM and RNOA
LVMH Moët Hennessy Louis Vuitton SE (LVMH) is a French multinational luxury goods conglomerate headquartered in Paris. The
following information is selected from their 2017 annual report.
(€ thousands)
Revenue
Operating income
Net interest expense and other nonoperating expense
Net income
Operating assets
Operating liabilities
LVMH has an income tax rate of approximately 30%
a. Compute LVMH's net operating profit after taxes (NOPAT) for 2017 and 2016.
Round answers to the nearest whole number.
2016 €
2017 €
2017 2016
42,636 37,600
8,113 6,904
179
432
5,616 4,363
67,246 58,504
26,714 24,340
b. Compute LVMH's net operating profit margin (NOPM) for each year.
Round answers to one decimal place. (Ex: 0.2345 = 23.5%)
%6
2016
2017
c. Compute LVMH's return on net operating assets (RNOA) for 2017.
Round answers to one decimal place. (Ex: 0.2345 = 23.5%)
2017

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