Compute RNOA, Net Operating Profit Margin, and NOA Turnover

Selected balance sheet and income statement information for Netflix Inc. the worlds leading Internet entertainment service, follows.

				2018 Net	2017 Net
		2018	2018	Operating	Operating
$ thousands	Ticker	Revenue	NOPAT	Assets	Assets
Netflix, Inc	NFLX	$6,902,127	$658,420	$5,158,497	$3,172,005

a. Compute 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.

	Numerator	Denominator	RNOA
	AnswerAverage assetsAverage equityAverage NOANet incomeNOPATNOPBTRevenueTax expenseTax on operating profitTax shield	AnswerAverage assetsAverage equityAverage NOANet incomeNOPATNOPBTRevenueTax expenseTax on operating profitTax shield
	Answer	Answer

b. Disaggregate RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT).

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.

	Numerator	Denominator	NOPM
	AnswerAverage assetsAverage equityAverage NOANet incomeNOPATNOPBTRevenueTax expenseTax on operating profitTax shield	AnswerAverage assetsAverage equityAverage NOANet incomeNOPATNOPBTRevenueTax expenseTax on operating profitTax shield
	Answer	Answer

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.

	Numerator	Denominator	NOAT
	AnswerAverage assetsAverage equityAverage NOANet incomeNOPATNOPBTRevenueTax expenseTax on operating profitTax shield	AnswerAverage assetsAverage equityAverage NOANet incomeNOPATNOPBTRevenueTax expenseTax on operating profitTax shield
	Answer	Answer