Compute RNOA, Net Operating Profit Margin, and NOA Turnover for Competitors Selected balance sheet and income statement information for the fiscal year ended February 2, 2019, for Abercrombie & Fitch Co. and TJX Companies Inc., clothing retailers in the high‑end and value‑priced segments, respectively, follows. Current Prior Year Net Year Net Operating Operating Company ($ millions) Ticker Sales NOPAT Assets Assets Abercrombie & Fitch ANF $3,887.1 $384.4 $1,089.3 $1,174.3 TJX Companies TJX $39,269.9 $3,363.7 $4,549.0 $4,411.3 Compute the following ratios for both companies for the fiscal year ended February 2, 2019. a. Return on net operating assets (RNOA) 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 Abercrombie & Fitch Answer Answer TJX Companies Answer Answer b. Net operating profit margin (NOPM) 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 Abercrombie & Fitch Answer Answer TJX Companies Answer Answer c. Net operating asset turnover (NOAT) 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 Abercrombie & Fitch Answer Answer TJX Companies Answer Answer
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Compute RNOA, Net Operating Profit Margin, and NOA Turnover for Competitors
Selected balance sheet and income statement information for the fiscal year ended February 2, 2019, for Abercrombie & Fitch Co. and TJX Companies Inc., clothing retailers in the high‑end and value‑priced segments, respectively, follows.
| Current | Prior | ||||
|---|---|---|---|---|---|
| Year Net | Year Net | ||||
| Operating | Operating | ||||
| Company ($ millions) | Ticker | Sales | NOPAT | Assets | Assets |
| Abercrombie & Fitch | ANF | $3,887.1 | $384.4 | $1,089.3 | $1,174.3 |
| TJX Companies | TJX | $39,269.9 | $3,363.7 | $4,549.0 | $4,411.3 |
Compute the following ratios for both companies for the fiscal year ended February 2, 2019.
a. Return on net operating assets (RNOA)
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 | |||
| Abercrombie & Fitch | Answer | Answer | ||
| TJX Companies | Answer | Answer |
b. Net operating profit margin (NOPM)
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 | |||
| Abercrombie & Fitch | Answer | Answer | ||
| TJX Companies | Answer | Answer |
c. Net operating asset turnover (NOAT)
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 | |||
| Abercrombie & Fitch | Answer | Answer | ||
| TJX Companies | Answer | Answer |
|
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