Compute and Compare ROE, ROA, and RNOA
Selected balance sheet and income statement information...
Business, 05.05.2020 17:03 glowbaby123
Compute and Compare ROE, ROA, and RNOA
Selected balance sheet and income statement information for Oracle Corporation follows. (Perform the required computations from the perspective of an Oracle shareholder.
$ millions
May 31, 2015
May 31, 2014
Operating assets
$56,535
$51,447
Nonoperating assets
54,368
38,819
Total assets
110,903
90,266
Operating liabilities
19,847
18,722
Nonoperating liabilities
41,958
24,097
Total liabilities
61,805
42,819
Total Oracle stockholders' equity
48,663
46,878
Total revenues
38,226
Operating income before tax
13,871
Nonoperating expense before tax
1,037
Tax expense
2,896
Net income
9,938
a. Compute return on equity (ROE)
Round answer to two decimal places (ex: 0.12345 = 12.35%)
%
b. Compute return on net assets (ROA)
Round answers to two decimal places (percentage ex: 0.12345 = 12.35%)
%
c. Compute return on net operating assets (RNOA)
Round answers to two decimal places (percentage ex: 0.12345 = 12.35%)
%
Answers: 3
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