Question

The 2016 financial statements of The New York Times Company reveal average shareholders’ equity attributable to controlling interest of $837,283 thousand, net operating profit after tax of $48,032 thousand, net income attributable to The New York Times Company of $29,068 thousand, and average net operating assets of $354,414 thousand.
The company’s return on net operating assets (RNOA) for the year is_____________.

Answer 1

Answer:

C. 13.6%

Explanation:

Given that

Net operating profit after tax = 48,032

Average net operating asset = 354,414

Recall that,

RNOA = net operating profit after tax/average net operating asset × 100

Thus,

RNOA = 48032/354414 × 100

= 0.1355 × 100

= 13.55%

= 13.6%.