You are a CEO of a company. You are analyzing the performance of your company, as a comparison to your industry/competitors. Your analysis of RNOF (Return on Net Operating Assets) is as follows: Your RNOA is 16%, but the industry benchmark is 10%. Your NOPM is 18%, but the industry benchmark is 17%. Your NOAT is .89, but the industry benchmark is .59. Please explain the following: . What does RNOA, NOPM, and NOAT measure or information it provides? • How is RNOA, NOPM, and NOAT measured/calculated? (What is the formula) • What interpretations can you draw from the information above that would be useful for managing your company? For example, how do you compare to your competitors? Which measurement is your companies strong point? . What area do you feel your company has room for improvement in?
You are a CEO of a company. You are analyzing the performance of your company, as a comparison to your industry/competitors. Your analysis of RNOF (Return on Net Operating Assets) is as follows: Your RNOA is 16%, but the industry benchmark is 10%. Your NOPM is 18%, but the industry benchmark is 17%. Your NOAT is .89, but the industry benchmark is .59. Please explain the following: . What does RNOA, NOPM, and NOAT measure or information it provides? • How is RNOA, NOPM, and NOAT measured/calculated? (What is the formula) • What interpretations can you draw from the information above that would be useful for managing your company? For example, how do you compare to your competitors? Which measurement is your companies strong point? . What area do you feel your company has room for improvement in?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:You are a CEO of a company. You are analyzing the performance of your company, as a comparison to your industry/competitors. Your analysis of RNOA
(Return on Net Operating Assets) is as follows:
Your RNOA is 16%, but the industry benchmark is 10%.
Your NOPM is 18%, but the industry benchmark is 17%.
Your NOAT is .89, but the industry benchmark is .59.
Please explain the following:
• What does RNOA, NOPM, and NOAT measure or information it provides?
• How is RNOA, NOPM, and NOAT measured/calculated? (What is the formula)
• What interpretations can you draw from the information above that would be useful for managing your company? For example, how do you compare
to your competitors? Which measurement is your companies strong point?
• What area do you feel your company has room for improvement in?
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