Compute GoPros return on net operating assets

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Question - Computing NOPAT, NOPM and RNOASelected information from the financial statements of GoPro, Inc. is provided below:

($ thousands)

2014

2013

Revenue

$1,375,210

$970,720

Operating income

187,035

98,703

Net interest expense and other nonoperating expense

5,955

6,743

Net income

121,111

59,999

Operating assets

715,346

399,716

Operating liabilities

276,487

254,227

Assume a statutory tax rate of 35%.

a. Compute GoPro's net operating profit after taxes (NOPAT) for 2014 and 2013.

b. Compute GoPro's net operating profit margin (NOPM) for each year.

c. Compute GoPro's return on net operating assets (RNOA) for 2014.

Reference no: EM132872781

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