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

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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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