Homework Answers
Answer to Question
(a) NOPAT = Earnings before interest and taxes * (1- tax rate)
NOPAT = 1,605,226 * (1 - 0.22) = $ 1,252,076
(b) Net operating assets (NOA) = total operating assets - total operating liabilities
NOA 2018 = (51,51,186 + 748,466 + 14,960,954 + 418,281 + 901,030) - (4686,019 + 562985+477,417 +760,899 + 3759026 + 129231 )
NOA 2018 = 22,179,917 - 10,375,577 = $11,804,340
NOA 2017 =
(4,310,934+536,245+10,371,055+319,404+652,309) - (4,173,041+359,555+315,094+618,622+3,329,796+ 135,246)
NOA 2017 = 16,189,947 - 8,931,354 = 7,258,593
(C) RNOA = NOPAT/NOA
RNOA 2018 = 1,252,076/11,804,340 = 10.61%
NOPM = NOPAT/ Net Revenue
NOPM 2018 = 1,252,076/15,794,341 = 7.93%
NOAT = Net Revenue/NOA = 15,794,341/11,804,340 = 1.34
(d) NNO = non operating obligations - non operating assets
NNO 2018 = 10,360,058 - 3,794,483 = $ 6,565,575
NNO 2017 = 6,499,432 - 2,822,795 = $ 3,676,637
(E) ROE = Earning available for shareholder/ Equity shareholder's fund
ROE = 1226,458 (1-0.22) = 956,637/5,238,765 = 18.26%
(f) Non operating return = ROE - RNOA = 18.26% - 10.61% = 7.65%
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