Question

Home Insert Page Layout Formulas Data Review View Help Search Calibri -11-AA BIU 18-la-A- General In- Paste 25 Wrap Text E Merge & Center - DD $ - % -8 Conditional Format as Cell Formatting Table Styles Styles Fo Clipboard Font Alignment Number AutoSave OM 314 f 4 B D E F G H 1 Selected balance sheet and income statement data follow for The New York Times Company for fiscal 2016 (in thousands). Use the data to calculate the following 2 3 a. Return on equity (ROE) 4 b. Return on net operating assets (RNOA) c. Retum on nonoperating assets 6 7 2016 2016 2016 2015 2016 2015 Battributable to New York Times common stockholders Net Net 9 NOPAT operating operating Common Common 10 assets assets equity equity 11 $29,068 $48,032 $353,696 $355, 132 5847.815 $826.751 12 13 14 a 15 16 b 8.19% 17 18 C 19 20 + Q1 02 Q3 04 DO NOT USE or delete А TOSHIBA

Answer 1

Note: All Calculations are done on assumption that Average values to be taken (All figures in thousand) A) Return on Equity: Net Profit Attributable to shareholders Average Common Equity Average Common Equity: 847815+826751 2 837283 Net Profit Attributable to shareholders II 29068 ROE II 29068/837283 3.47% II B) Return on Net Operating Assets: Net operating profit after tax Average Net operating Assets NOPAT Average Net operating Assets 48032 353696+355132 2 354414 RNOA II 48032 354414 13.55% =

C) Return on Non operating Assets: Non operating assets for 2015 (Assuming only common equites are there in liability side) Common Equity-Net Operating Assets 826751-355132 471619 = Non operating assets for 2016 = = 847815-353696 494119 Average Non operating assets 11 471619+494119 2 = 482869 Return on non operating assets II = NOPAT Average Non operating assets 48032 482869 9.95% =