Question

Jan. 27, 2019 12 Months Ended Jan. 28, Jan. 29, 2018 2017 Jan. 31, 2016 $ 11,716 4,545 7,171 $ 9,714 3,892 5,822 $ 6,910 2,84

NVDA CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions Jano:27 Jan. 27, 2019 020:28 Jan. 28, 2018 Jan. 29, 2017 Jan. 31, 20

Use the information from the Income Statements and Balance Sheets to calculate the ratios in the image below for years provided (Numbers 1-6):

1. Return on net operating assets (RNOA)... 2. Return on common equity (ROCE) 3. Return on long-term debt and equity 4. Equit*Legend: NOA NFO (NOA - SE... NOPAT NFE (NOPAT-NI) RNOA LEV.. Net operating assets Stockholders equity (CC.16) Net financial

Please provide examples of each equation used so that I may create an excel file and replicate process.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

RNOA = Net Income After Tax / Net Operating Assets

Net Operating Assets = Current Assets - Current Liabilities

For Jan ,2019, NOA = 13292 - 3950 = 9342        RNOA = 4141 / 9342 = 44.32%

For Jan ,2018, NOA = 7471                               RNOA = 3047 / 7471 = 40.78%

For Jan ,2018, NOA = 5793                               RNOA = 1666 / 5793 = 28.75%

For Jan ,2018, NOA = 4556                               RNOA = 614 / 4556 = 13.47%

ROCE = Net Income / Average Outstanding Shares

For Jan 2019,   ROCE = 4141 / (7471+9342)/2 = 4141/8391.5 = 49.34%

For Jan 2018,   ROCE = 3047 / (5762+7471)/2 = 3047/6616.5 = 46.05%

For Jan 2017,   ROCE = 1666 / (4469+5762)/2 = 1666/5115.5 = 32.56%

Return on Long Term Debt and Equity = Net Income / Average Long Term Debt and Equity

For Jan 2019,   ROLTDE = 4141 / (7471+9342+1988+1985)/2 = 4141/10393 = 39.84%

For Jan 2018,   ROLTDE = 3047 / (5762+7471+1983+1985)/2 = 3047/8585.5 = 35.49%

For Jan 2017,   ROLTDE = 1666 / (4469+5762+1983+0)/2 = 1666/6107 = 27.28%

Equity Growth Rate = (Net Income - Dividends) / Shareholders' Equity

For Jan 2019,   Dividend = 9342*0.610 = 5699, EGR = (4141 - 5699) / 9342 = -16.67%

For Jan 2018,   Dividend = 7471*0.570 = 4258, EGR = (3047 - 4258) / 7471 = -16.20%

For Jan 2017, Dividend = 5762*0.485 = 2795, EGR = ( 1666- 2795) / 5762 = -19.59%

ROCE is disaggregated into the Various components to help the analyst to gain more insight about the financial performance of the firm

ROCE = RNOA + Leverage x Spread.

Leverage = Debt-to-Equity Ratio = Total Liabilities / Total Shareholder's Equity

Add a comment
Know the answer?
Add Answer to:
Use the information from the Income Statements and Balance Sheets to calculate the ratios in the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Balance sheets and income statements for Nordstrom, Inc., follow. Refer to these financial statements to answer the requ...

    Balance sheets and income statements for Nordstrom, Inc., follow. Refer to these financial statements to answer the requirements. Nordstrom, Inc. Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) 2016 2015 2014 Net Sales $14,095 $13,110 $12,166 Credit card revenues 342 396 374 Total revenues 14,437 13,506 12,540 Cost of sales and related buying and occupancy costs (9,168) (8,406) (7,737) Selling, general and administrative expenses (4,168) (3,777) (3,453) Earnings before interest and income taxes 1,101 1,323 1,350 Interest expense,...

  • Analysis and Interpretation of Profitability Balance sheets and income statements for Nordstrom, Inc., follow. Refer to...

    Analysis and Interpretation of Profitability Balance sheets and income statements for Nordstrom, Inc., follow. Refer to these financial statements to answer the requirements. Nordstrom, Inc. Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) 2016 2015 2014 Net Sales $14,095 $13,110 $12,166 Credit card revenues 342 396 374 Total revenues 14,437 13,506 12,540 Cost of sales and related buying and occupancy costs (9,168) (8,406) (7,737) Selling, general and administrative expenses (4,168) (3,777) (3,453) Earnings before interest and income taxes...

  • Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. Costco...

    Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) September 2, 2018 Total revenue $141,576 Operating expenses Merchandise costs 123,152 Selling, general and administrative 13,876 Preopening expenses 68 Operating Income 4,480 Other income (expense) Interest expense 159 Interest income and other, ne (121) Income before income taxes 4,442 Provision for income taxes 1,263 Net income including noncontrolling interests 3,179 Net income...

  • this is a clearer picture .. thanks Direct Computation of Nonoperating Return Balance sheets and income...

    this is a clearer picture .. thanks Direct Computation of Nonoperating Return Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) August 28, 2016 August 30, 2015 August 31, 2014 Revenue Net Sales $116,073 $113,666 $110,212 Membership fees 2,646 2,533 2,428 Total revenue 118,719 116,199 112,640 Operating expenses Merchandise costs 102,901 101,065 98,458 Selling, general and administrative 12,068 11,445 10,899 Preopening expenses 65 63 Operating Income...

  • Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. Costco...

    Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended (5 millions) September 2, 2018 Total revenue $141,576 Operating expenses Merchandise costs 123,152 Selling general and administrative 13,876 Preopening expenses 68 Operating Income 4,480 Other Income (expense) Interest expense 159 Interest income and other, net (121) Income before income taxes Provision for income taxes 1,263 Net income including noncontrolling interests 3,179 Net income attributable...

  • Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. Costco...

    Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) August 28, 2016 August 30, 2015 August 31, 2014 Revenue Net Sales $116,073 $113,666 $110,212 Membership fees 2,646 2,533 2,428 Total revenue 118,719 116,199 112,640 Operating expenses Merchandise costs 102,901 101,065 98,458 Selling, general and administrative 12,068 11,445 10,899 Preopening expenses 63 Operating Income 3,672 3,624 3,220 Other income (expense) Interest expense...

  • Analysis and Interpretation of Profitability Balance sheets and income statements for 3M Company follow. 3M COMPANY...

    Analysis and Interpretation of Profitability Balance sheets and income statements for 3M Company follow. 3M COMPANY Consolidated Statements of Income For Years ended December 31 (5 millions) 2018 2017 Net sales $32,765 $31,657 Operating expenses Cost of sales 16,682 16,055 Selling, general and administrative expenses 7,602 6,626 Research, development and related expenses 1,821 1,870 Gain on sale of businesses (547) Total operating expenses 25,558 23,965 Operating income 7,207 7,692 Other expense, net* 207 144 Income before income taxes 7,000 7,548...

  • Analysis and Interpretation of Profitability Balance sheets and income statements for 3M Company follow. Consolidated Statements...

    Analysis and Interpretation of Profitability Balance sheets and income statements for 3M Company follow. Consolidated Statements of Income Years ended December 31 ($ millions) 2010 2009 2008 Net sales $26,662 $23,123 $25,269 Operating expenses Cost of sales 13,831 12,109 13,379 Selling, general and administrative expenses 5,479 4,907 5,245 Research, development and related expenses 1,434 1,293 1,404 Loss/(gain) from sale of business -- -- 23 Total operating expenses 20,744 18,309 20,051 Operating income 5,918 4,814 5,218 Interest expenses and income Interest...

  • Balance sheets and income statements for 3M Company follow. Consolidated Statements of Income Years ended December...

    Balance sheets and income statements for 3M Company follow. Consolidated Statements of Income Years ended December 31 ($ millions) 2009 2008 2007 Net sales $23,123 $25,269 $24.462 Operating expenses Cost of sales 12.109 13.379 12,735 Selling. general and administrative expenses 4,907 5,245 5.015 Research, development and related expenses 1,293 1,404 1,368 Loss/(gain) from sale of business 23 (849) Total operating expenses 18.309 20,051 18.269 Operating income 4.814 5.218 6.193 Interest expenses and income Interest expense 219 215 210 Interest income...

  • Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. Costco...

    Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) August 28, 2016 August 30, 2015 August 31, 2014 Revenue Net Sales $116,073 $113,666 $110,212 Membership fees 2,646 2,533 2,428 Total revenue 118,719 116,199 112,640 Operating expenses Merchandise costs 102,901 101,065 98,458 Selling, general and administrative 12,068 11,445 10,899 Preopening expenses 63 Operating Income 3,672 3,624 3,220 Other income (expense) Interest expense...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT