With formulas: 

net operating assets(ROA)= Net income / Average total assets

net operating profit after tax (NOPAT) =The net operating profit before tax - Tax on operating profit
Tax on operating profit=  The tax expense + (pretax net nonoperating expense * U.S. federal statutory tax rate)

net operating assets (NOA)=Operating Assets−Operating Liabilities

Average NOA = (NOA start of year + NOA end of year) / 2

RNOA= NOPAT / NOA = Net operating profit after tax/ Average net operating assets= NOPM*NOAT

 

net operating profit margin(NOPM) = NOPAT/Sales = Net operating profit after tax/ Sales

net operating asset turnover(NOAT)= Sales/ Average NOA

net nonoperating obligations (NNO), Confirm the relation: NOA = NNO + Total equity.

return on equity(ROE) = Net income / Average stockholders' Equity= ROA*FL = Operating return (via RNOA) + Nonoperating return

(Financial Leverage) FL=Average total assets /  Average stockholders' Equity

 

 

Company: The Kraft Heinz Company

please answer the following: (Please show the calculations)

 

 

(a) Compute net operating profit after tax (NOPAT) for 2016 and 2017

 

(b) Compute net operating assets (NOA) for 2016 and 2017.

 

(c) Compute RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2016 and 2017.

 

(d) Compute net nonoperating obligations (NNO) for 2016 and 2017. Confirm the relation: NOA = NNO + Total equity.

 

(e) Compute return on equity (ROE) for 2016 and 2017.

 

(f) Infer the nonoperating return component of ROE for 2016 and 2017

 

2015 10-k form: 

https://ir.kraftheinzcompany.com/node/9161/html

2016 10-k form: 

https://ir.kraftheinzcompany.com/static-files/a49ed727-bc22-4089-bbf0-a316e44a7351

2017 10-k form: 

https://ir.kraftheinzcompany.com/static-files/d1b6f2be-53e6-4703-b258-c89ef199006e

2018 10-k form: 

https://ir.kraftheinzcompany.com/static-files/e0ec203b-d7c4-4025-b263-52cfe321960f