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 $21,596 $29,534 Pretax net nonoperating expense 588 383 Net income 1,740 2,286 Average operating assets 24,529 71,228 Average operating liabilities 5,299 14,849 Marginal tax rate 22% 19% Return on equity 18.56% 5.86%
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 $21,596 $29,534 Pretax net nonoperating expense 588 383 Net income 1,740 2,286 Average operating assets 24,529 71,228 Average operating liabilities 5,299 14,849 Marginal tax rate 22% 19% Return on equity 18.56% 5.86%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | $21,596 | $29,534 |
| Pretax net nonoperating expense | 588 | 383 |
| Net income | 1,740 | 2,286 |
| Average operating assets | 24,529 | 71,228 |
| Average operating liabilities | 5,299 | 14,849 |
| 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 | Answer | Answer |
| NOPM | Answer | Answer |
| NOAT | Answer | Answer |
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