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 $23,995 $32,815 Pretax net nonoperating expense 653 426 Net income 1,657 2,177 Average operating assets 23,361 67,836 Average operating liabilities 5,888 16,499 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.
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 $23,995 $32,815 Pretax net nonoperating expense 653 426 Net income 1,657 2,177 Average operating assets 23,361 67,836 Average operating liabilities 5,888 16,499 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.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
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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 | $23,995 | $32,815 |
| Pretax net nonoperating expense | 653 | 426 |
| Net income | 1,657 | 2,177 |
| Average operating assets | 23,361 | 67,836 |
| Average operating liabilities | 5,888 | 16,499 |
| Marginal tax rate | 22% | 19% |
| 18.56% | 5.86% |
a. Compute
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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