Discussion
Describe the differences between Return on Net Operating Assets (RNOA) and Return on Common Equity (ROCE). Include your opinion on which metric is more beneficial to financial statement analysis. Be sure to comment beyond discussing the formula for computing the two ratios.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.
Chapter 8 in Financial Statement Analysis
Benoit, D. (2016). Finance's hot new metric: ROIC. Wall Street Journal.
Gallo A. (2016). A refresher on return on assets and return on equity. Harvard Business Review Digital Articles. 2-6. (To view this reading, please open the link provided and download the "PDF full text.")
Brîndescu - Olariu, D. (2016). Profitability ratio as a tool for bankruptcy prediction. SEA: Practical Application of Science IV(11), 369-72.
Subramanyam, K. R. (2014). Financial statement analysis (11th ed.). New York, NY: McGraw Hill. ISBN13: 9780078110962.