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Homework answers / question archive / Compute, Disaggregate, and Interpret RNOA of Competitors Halliburton and Schlumberger compete in the oil field services sector
Compute, Disaggregate, and Interpret RNOA of Competitors Halliburton and Schlumberger compete in the oil field services sector. Refer to the following 2018 financial data for the two companies to answer the requirements.
$ millions HAL SLB Total revenue 528,794 784 2,071 29,201 7,066 22% 18.56% 539,378 511 2,721 84,795 19,799 19% 5.86% Pretax net nonoperating expense Net income Average operating assets Average operating liabilities Marginal tax rate Return on equity
a. Compute 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. Do not round until your final answer. Round answers to two decimal places (percentage example: 0.12345 = 12.35%).
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