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).