Shell Oil Company is the U.S.-based subsidiary of Royal Dutch Shell, a multinational oil company headquartered in The Hague, The Netherlands. BP Limited is a multinational oil company headquartered in London U.K. Selected balance sheet and income statement information and assumptions for both Royal Dutch Shell and BP follow.

a. Compute the 2012 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.

c. Discuss any differences in these ratios for each company. What drives the differences in RNOA observed in parts \(a\) and \(b\) ?

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($ millions) Royal Dutch Shell.. BP Limited.. 2012 Sales $467,153 375,580 2012 2012 Net NOPAT Operating Assets $24,420 11,305 $204,264 123,017 2011 Net Operating Assets $191,394 128,795