Question: Company X s NOPAT margin is 2 of sales Company Y
Company X’s NOPAT margin is 2% of sales. Company Y has a net operating asset turnover of 12. Both companies’ RNOA are 6% and are considered unsatisfactory by industry norms. What is the net operating asset turnover of Company X? What is the NOPAT margin for Company Y? What strategic actions do you recommend to the managements of the respective companies?
Answer to relevant QuestionsWhat circumstances justify including convertible debt as equity capital when computing return on share- holders’ equity?Selected financial information for ADAM Corporation is reproduced below:1. NOA turnover (average NOA equals ending NOA) is 3.2. NOPAT margin is 7%.3. Leverage ratio (average NFO to average common equity) is 1.667, and the ...In its annual report, discloses the following:Financial Objectives: Provide total shareholder returns (dividends plus share price appreciation) that exceed both the cost of equity and the S&P 500 stock index over time. ...Selected data from Kemp Corporation are reproduced below:Required:a. For Year 4, compute the following ratios:(1) Inventory/Sales.(2) Inventory/Income contribution.b. Compute the percentage of each product line’s income ...Describe the steps in forecasting the income statement.
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