Compute RNOA, Net Operating Profit Margin, and NOA Turnover for Competitors Selected balance sheet and income statement
Question:
Compute RNOA, Net Operating Profit Margin, and NOA Turnover for Competitors
Selected balance sheet and income statement information for the fiscal year ended February 2, 2019, for Abercrombie & Fitch Co. and TJX Companies Inc., clothing retailers in the highend and valuepriced segments, respectively, follows.
Current | Prior | ||||
---|---|---|---|---|---|
Year Net | Year Net | ||||
Operating | Operating | ||||
Company ($ millions) | Ticker | Sales | NOPAT | Assets | Assets |
Abercrombie & Fitch | ANF | $3,809.1 | $306.4 | $1,011.3 | $1,096.3 |
TJX Companies | TJX | $39,191.9 | $3,285.7 | $4,471.0 | $4,333.3 |
Compute the following ratios for both companies for the fiscal year ended February 2, 2019.
a. Return on net operating assets (RNOA)
Note: 1. Select the appropriate numerator and denominator used to compute RNOA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute RNOA.
Company | Numerator | Denominator | RNOA | |
---|---|---|---|---|
AnswerAverage assetsAverage equityAverage NOANet incomeNOPATNOPBTRevenueTax expenseTax on operating profitTax shield | AnswerAverage assetsAverage equityAverage NOANet incomeNOPATNOPBTRevenueTax expenseTax on operating profitTax shield | |||
Abercrombie & Fitch | Answer | Answer | ||
TJX Companies | Answer | Answer |
b. Net operating profit margin (NOPM)
Note: 1. Select the appropriate numerator and denominator used to compute NOPM from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute NOPM.
Company | Numerator | Denominator | NOPM | |
---|---|---|---|---|
AnswerAverage assetsAverage equityAverage NOANet incomeNOPATNOPBTRevenueTax expenseTax on operating profitTax shield | AnswerAverage assetsAverage equityAverage NOANet incomeNOPATNOPBTRevenueTax expenseTax on operating profitTax shield | |||
Abercrombie & Fitch | Answer | Answer | ||
TJX Companies | Answer | Answer |
c. Net operating asset turnover (NOAT)
Note: 1. Select the appropriate numerator and denominator used to compute NOAT from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute NOAT.
Company | Numerator | Denominator | NOAT | |
---|---|---|---|---|
AnswerAverage assetsAverage equityAverage NOANet incomeNOPATNOPBTRevenueTax expenseTax on operating profitTax shield | AnswerAverage assetsAverage equityAverage NOANet incomeNOPATNOPBTRevenueTax expenseTax on operating profitTax shield | |||
Abercrombie & Fitch | Answer | Answer | ||
TJX Companies | Answer | Answer |
Financial And Managerial Accounting For MBAs
ISBN: 9781618533593
6th Edition
Authors: Peter D. Easton