Compute the return on net operating assets

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Reference no: EM131711431

Question - Compute and Interpret RNOA, Profit Margin, and Asset Turnover of Competitors

Selected balance sheet and income statement information for drug store retailers

CVS Health Corp. and Walgreens Boots Alliance follows.

2015 Net 2014 Net

2015     Operating Operating

Company ($ millions) Ticker 2015 Sales      NOPAT    Assets Assets

CVS Health CVS $153,290  $5,758 $62,159 $48,338

Walgreens Boots Alliance WBA 103,444  3,642 42,683 22,461

a. Compute the 2015 return on net operating assets (RNOA) for each company.

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

Reference no: EM131711431

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