1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kotegsom [21]
3 years ago
15

Compute, Disaggregate, and Interpret RNOA of CompetitorsHalliburton and Schlumberger compete in the oil field services sector. R

efer to the following 2018 financial data for the two companies to answer the requirements.$ millions HAL SLBTotal revenue $23,995 $32,815Pretax net nonoperating expense 653 426Net income 1,657 2,177Average operating assets 23,361 67,836Average operating liabilities 5,888 16,499Marginal tax rate 22% 19%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 = 12.35%). HAL SLBRNOA Answer AnswerNOPM Answer AnswerNOAT Answer Answer
Business
1 answer:
wolverine [178]3 years ago
6 0

Answer:

a. Return on net operating assets (RNOA) = Net Operating Income after tax / Average Net Operating Assets

Net Operating Income after Tax                                          HAL                SLB

Net Income (before tax)                                                        2,124             2,688

Add : Pre tax net non operating Expense                             653                 426

Net Operating Income before Tax                                      2,777                3,114

Marginal Tax Rate                                                                  22%                 19%

Less Tax Expense                                                                  -611                 -592

Net Operating Income after tax                                       2,166               2,522

Net Income before tax =  (Net Income (after tax)*1/(1 -Tax Rate)

Hal = 1,657 * 1/(1 - 22%)

= $2,124

SLB = 2,177 1/(1 - 22%)

= $2,688

                                                                                             HAL               SLB

Average Operating Assets                                                23,361         67,836

Average Operating Liability                                               5,888          16,499

Average Net Operating Assets                                      17,473           51,337

<h2>Return on net operating assets (RNOA)       12.40%           4.91%</h2>

B. Net Operating Profit Margin = Net Operating Profits after tax/ Total Revenue

                                                                                             HAL               SLB

Net Operating Income after tax                                         2,166           2,522

Total Revenue                                                                   23,995         32,815

<h2>Net Operating Profit Margin                            9.03%           7.69%</h2>

Net Operating Asset Turnover = Total Revenue/ Average Net Operating Assets

                                                                         HAL               SLB

Total Revenue                                                  23,995           32,815

Average Net Operating Assets                        17,473            51,337

<h2>Net Operating Asset Turnover        1.37 times      0.64 times</h2>
You might be interested in
The variety of Riverside Ranger logo T-shirts includes 12 different designs. Setup between designs takes one hour (and $18,000),
cluponka [151]

Answer:

The production exhibit both scope economics and scale economics. They are not mutually exclusive.

Explanation:

Looking at the scenario critically, we will clearly see the tendency of a scope economics. Scope economics basically hinges on getting a competitive advantage, essentially because of producing in large quantities and numbers. Riverside Ranger logo T-shirts exhibits this as it produce its products in large numbers, producing 1000 pieces of a particular design in 1 hour.

In same breath, we also have the scale economics exhibited by the organization. Taking a deeper look at the cost representation, we will see that the average cost tend to reduce as the production increases. Thus, an economic of scale is achieved here by leveraging on the mass and swift production style of Riverside Rangers logo T-shirts.

7 0
3 years ago
In the "finding, evaluating, and interpreting source material" stage of the research process, finding means:
Gennadij [26K]
The research process consists of multiple steps in order to find a solution or answer to a particle problem or question. In the stage of the research process which involves "<span>finding, evaluating, and interpreting source material", this means analyzing how your source materials can be applicable to your question or problem.</span>
5 0
3 years ago
On April 30, Gomez Services had an Accounts Receivable balance of $24,600. During the month of May, total credits to Accounts Re
Nataliya [291]

Answer: $53,600

Explanation:

Credit sales increase the balance on Accounts Receivables because they represent that people owe the business.

It is therefore included in the formula for calculating the ending balance of Accounts Receivables:

Ending accounts receivables = Beginning accounts receivable + Credit sales in May - Customer payments during May

19,000 = 24,600 + Credit Sales in May - 59,200

Credit Sales in May = 19,000 + 59,200 - 24,600

= $53,600

4 0
2 years ago
A government entered into a general government capital lease in the prior year. During the current year, a lease payment of $50,
m_a_m_a [10]

Answer:

Net increase in Capital Assets with amount of USD 38,000/-

5 0
3 years ago
Many new ventures focusing on craft beer have been launched. If the goal is to make a profit, perhaps it would have been a bette
klemol [59]

Answer:

a. Total rate variance = $1,660 Unfavorable

b. Total efficiency variance = $450 Unfavorable

Explanation:

From the question, we have:

Standard for hops = 20 pounds per barrel

Standard rate = Standard rate for hops = $13.00 per pound

Barrels of Hopalong beer produced = 40

Actual quantity = Actual pounds of hops used = 830 pounds

Standard quantity = Standard pounds of hops = Standard for hops * Barrels of Hopalong beer produced = 20 * 40 = 800 pounds

Actual rate = Actual cost of hops per pound = $15

Therefore, we have:

a. Compute the total rate variance for the past month

Total rate variance = (Actual rate - Standard rate) * Actual quantity = ($15 - $13) * 830 = $1,660 Unfavorable

The total rate variance of $1,660 is unfavorable because the Actual rate is greater than the Standard rate.

b. Compute the total efficiency variance for the past month

Total efficiency variance = (Actual quantity - Standard quantity) * Standard rate = (830 - 800) * $15 = $450 Unfavorable

The total efficiency variance of $450 is unfavorable because the Actual quantity is greater than the Standard quantity.

6 0
3 years ago
Other questions:
  • Tamarisks Hardware reported cost of goods sold as follows. 2019 2020 Beginning inventory $ 23,000 $ 33,500 Cost of goods purchas
    15·1 answer
  • A(n)______________________ aligns strategic goals, operations effectiveness, reporting, and compliance objectives. a. operationa
    5·2 answers
  • Ethical Work Climate reflects the ________ of the organization and shapes the ________ of its members.
    6·1 answer
  • The probability of completing a project in a specified amount of time is being calculated. For a particular path through the pro
    7·1 answer
  • Notice that real GDP trends upward over time but experiences ups and downs in the short run. These short-run fluctuations in rea
    11·1 answer
  • Which project type creates a competitive advantage that enables the organization to earn a greater than normal return on investm
    8·1 answer
  • Subway, the sandwich shop, is run by Jim, Tim and Kim. When a customer arrives, Jim spends 5 minutes taking order from the custo
    12·1 answer
  • Which type of document typically includes contract contingencies?
    14·1 answer
  • Corporation is considering a capital budgeting project that would require an initial investment of $350,000. The investment woul
    14·1 answer
  • When would you want to get the lowest interest rate possible?​
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!