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.
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$ millions
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May 31, 2015
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May 31, 2014
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Operating assets
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$56,535
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$51,447
|
|
Nonoperating assets
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54,368
|
38,819
|
|
Total assets
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110,903
|
90,266
|
|
|
|
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Operating liabilities
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19,847
|
18,722
|
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Nonoperating liabilities
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41,958
|
24,097
|
|
Total liabilities
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61,805
|
42,819
|
|
|
|
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Total Oracle stockholders' equity
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48,663
|
46,878
|
|
|
|
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Total revenues
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38,226
|
|
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Operating income before tax
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13,871
|
|
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Nonoperating expense before tax
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1,037
|
|
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Tax expense
|
2,896
|
|
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Net income
|
9,938
|
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a. Compute return on equity (ROE).
b. Compute return on net assets (ROA).
c. Compute return on net operating assets (RNOA).