Analysts sometimes make adjustments to net operating asset

Reference no: EM133204560

Assignment - Return on Invested Capital and Profitability Analysis Paper

Description - When calculating return on net operating assets, analysts sometimes make adjustments to the net operating asset base used in the denominator of the ratio. Three possible adjustments are listed below. Explain what these adjustments are, and discuss the merits of these adjustments.

1. Non-operating asset adjustment

2. Intangible asset adjustment

3. Accumulated depreciation adjustment

Reference no: EM133204560

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