Compute return on net operating assets

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Question - Compute and Compare ROE, ROA, and RNOA

Selected balance sheet and income statement information for Oracle Corporation follows. (Perform the required computations from the perspective of an Oracle shareholder.

$ millions

May 31, 2015

May 31, 2014

Operating assets

$56,535

$51,447

Nonoperating assets

54,368

38,819

Total assets

110,903

90,266




Operating liabilities

19,847

18,722

Nonoperating liabilities

41,958

24,097

Total liabilities

61,805

42,819




Total Oracle stockholders' equity

48,663

46,878




Total revenues

38,226


Operating income before tax

13,871


Nonoperating expense before tax

1,037


Tax expense

2,896


Net income

9,938


a. Compute return on equity (ROE).

b. Compute return on net assets (ROA).

c. Compute return on net operating assets (RNOA).

Reference no: EM131648744

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