Module 4 Flashcards
(5 cards)
0
Q
Compute tax on operating profit
A
NOPAT = NOBT - Tax on operating profit
Tax on operating profit = tax expense + (pretax net nonoperating expense x statutory tax rate)
1
Q
Calculate
Return on Net Operating Assets
A
RNOA = Net Operating Profit after Taxes / Average Net Operating Assets.
2
Q
Calculate net operating assets
A
NOA = operating assets - operating liabilities.
3
Q
Disaggregate RNOA
A
RNOA = NOPAT / Average NOA
= NOPAT/Sales x Sales/average NOA
4
Q
Calculate net operating asset turnover.
A
NOAT = Revenues / Average NOA
