Following is the income statement for Lowes Companies Inc. LOWES COMPANIES INC. Consolidated Statement of Earnings Twelve
Question:
Following is the income statement for Lowe’s Companies Inc.
LOWE’S COMPANIES INC. | ||
---|---|---|
Consolidated Statement of Earnings | ||
Twelve Months Ended (In millions) | Feb. 1, 2019 | |
Net sales | $57,047 | |
Cost of sales | 38,721 | |
Gross margin | 18,326 | |
Expenses | ||
Selling, general and administrative | 13,930 | |
Depreciation and amortization | 1,182 | |
Operating income | 3,214 | |
Interest expense, net | 499 | |
Pretax earnings | 2,715 | |
Income tax provision | 864 | |
Net earnings | $1,851 |
Compute its net operating profit after tax (NOPAT) for the 12 months ended February 1, 2019, assuming a 22% total statutory tax rate.
Note: Round your answer to the nearest whole dollar (millions).
$Answer
Compute RNOA, Net Operating Profit Margin, and NOA Turnover for Competitors
Selected balance sheet and income statement information for the fiscal year ended February 2, 2019, for Abercrombie & Fitch Co. and TJX Companies Inc., clothing retailers in the high‑end and value‑priced segments, respectively, follows.
Current | Prior | |||||
---|---|---|---|---|---|---|
Year Net | Year Net | |||||
Operating | Operating | |||||
Company ($ millions) | Ticker | Sales | NOPAT | Assets | Assets | |
Abercrombie & Fitch | ANF | $3,590.10 | $84.78 | $768.53 | $877.30 | |
TJX Companies | TJX | 37,803.71 | 2,974.70 | 4,252.00 | 3,990.87 |
Compute the following ratios for both companies for the fiscal year ended February 2, 2019.
Note: For RNOA and NOPM, round percentage to one decimal places (for example, enter 6.7% for 6.6555%).
Note: For NOAT, round amount to two decimal places (for example, enter 6.78 for 6.77555).
ANF | TJX | ||
---|---|---|---|
a. | Return on net operating assets (RNOA) | ||
b. | Net operating profit margin (NOPM) | ||
c. | Net operating asset turnover (NOAT) |