Return on net operating assets ( RNOA = NOPAT/Average NOA) is commonly used to evaluate a companies financial performance. If managers cannot increase NOPAT, they can still increase RNOA by reducing the amount of net operating assets (NOA).

Listed below are four operating items that can be effectively managed to reduce operating assets, and/or increase RNOA:

1. Inventories
2. Accounts Receivable
3. Plant, Property, and Equipment (fixed assets)
4. Accounts Payable

List and explainONEaction you would take, forEACHoperating item above, to increase RNOA and/or reduce net operating assets (NOA). you should have ONE action item for EACH operating item listed.