Question - Compute and Interpret RNOA, Profit Margin, and Asset Turnover of Competitors
Selected balance sheet and income statement information for drug store retailers
CVS Health Corp. and Walgreens Boots Alliance follows.
2015 Net 2014 Net
2015 Operating Operating
Company ($ millions) Ticker 2015 Sales NOPAT Assets Assets
CVS Health CVS $153,290 $5,758 $62,159 $48,338
Walgreens Boots Alliance WBA 103,444 3,642 42,683 22,461
a. Compute the 2015 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.