Question

- Busines Course Retum to course :: My Subscrptions Jennifer Question 7 Not complete Marked out of 6.00 P Flag question 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. S 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 1995 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 Do not round until your final answer. Round answers to two decimal places (percentage example: 0.12345 - 12.358) HAL SLB RNOA 0 O NOPM 0 NOAT 0 O Check

Answer 1

		HAL	SLB
A	Revenue	$ 23,995.00	$ 32,815.00
B	Net Income	$    1,657.00	$    2,177.00
C	Non Operating exp	$        653.00	$        426.00
D	Net Operating Profit before Tax (A-B+C)	$    2,310.00	$    2,603.00
E	Marginal Tax @ 22%	$        508.20	$        572.66
F	Net Operating Profit After Tax (D-E)	$    1,801.80	$    2,030.34
G	Average Operating Assets	$ 23,361.00	$ 67,336.00
H	RNOA (F/G)	7.71%	3.02%
I	Net Operating Profit Margin (F/A)	7.51%	6.19%
J	Net Operating Asset Turnover (A/G)	1.03	0.49