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>
