Computing NOPAT, NOPM and RNOA Selected information from the financial statement

Question

Computing NOPAT, NOPM and RNOA Selected information from the financial statements of GoPro, Inc. is provided below: ($ thousands) Revenue Operating income Net interest expense and other nonoperating expense Net income Operating assets Operating liabilities 2014 2013 $1,084,215 $798,737 187,035 98,703 4,960 5,774 09,088 50,577 615.345 529,617 276,487 254,227 Assume a statutory tax rate of 35%. a. Compute GoPro's net operating profit after taxes (NOPAT) for 2014 and 2013 Round answers to the nearest whole number 2014 $ 2013 $ b. Compute GoPro's net operating profit margin (NOPM) for each year Round answers to one decimal place. (Ex: 0.2345 23.5%) 2014 2013 C. Compute GoPro's return on net operating assets (RNOA) for 2014 Round answers to one decimal place. (Ex: 0.2345-23596) 2014 0%

Explanation / Answer

Solution a:

Net operating profit after taxes = Net Operating profit (1 - Tax rate)

2014 = $187,035 (1-0.35) = $121,573

2013 = $98,703 ( 1-0.35) = $64,157

Solution b:

Net operating profit margin (NOPM) = NOPAT / Revenue

2014 = $121,573 / $1,084,215 = 11.2%

2013 = $64,157 / $798,737 = 8.0%

Solution c:

Return on net operating assets = NOPAT / Average net operating assets

Net operating assets 2014 = $615,345 - $276,487 = $338,858

Net Operating Assets 2013 = $529,617 - $254,227 = $275,390

Average net operating assets = ($338,858 + $275,390) / 2 = $307,124

Return on net operating assets 2014 = $121,573 / $307,124 = 39.6%

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.