ompute, 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 $24,679 $33,499 Pretax net nonoperating expense 1,337 1,110 Net income 2,341 2,861 Average operating assets 24,045 68,520 Average operating liabilities 6,572 17,183 Marginal tax rate 22% 19% Return on equity 18.56% 5.86% a. Compute return on net operating assets (RNOA) for each company. 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 RNOA. Company Numerator Denominator RNOA Answer Answer HAL Answer Answer SLB Answer Answer b. Disaggregate RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for each company. 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 NOPM. Company Numerator Denominator NOPM Answer Answer HAL Answer Answer SLB 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 NOAT. Company Numerator Denominator NOAT Answer Answer HAL Answer Answer SLB Answer Answer
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 | $24,679 | $33,499 |
Pretax net nonoperating expense | 1,337 | 1,110 |
Net income | 2,341 | 2,861 |
Average operating assets | 24,045 | 68,520 |
Average operating liabilities | 6,572 | 17,183 |
Marginal tax rate | 22% | 19% |
Return on equity | 18.56% | 5.86% |
a. Compute return on net operating assets (RNOA) for each company.
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 RNOA.
Company | Numerator | Denominator | RNOA | |
---|---|---|---|---|
Answer | Answer | |||
HAL | Answer | Answer | ||
SLB | Answer | Answer |
b. Disaggregate RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for each company.
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 NOPM.
Company | Numerator | Denominator | NOPM | |
---|---|---|---|---|
Answer | Answer | |||
HAL | Answer | Answer | ||
SLB | 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 NOAT.
Company | Numerator | Denominator | NOAT | |
---|---|---|---|---|
Answer | Answer | |||
HAL | Answer | Answer | ||
SLB | Answer | Answer |
|
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