Describe the differences between Return on Net Operating Assets (RNOA) and Return on Common Equity (ROCE).

Describe the differences between Return on Net Operating Assets (RNOA) and Return on Common Equity (ROCE).
February 13, 2020 Comments Off on Describe the differences between Return on Net Operating Assets (RNOA) and Return on Common Equity (ROCE). Assignment Assignment help

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.

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. Retrieved from https://doaj.org/article/880a9b2edf1344b98eac34826f4e094a

Subramanyam, K. R. (2014). Financial statement analysis (11th ed.). New York, NY: McGraw Hill. ISBN13: 9780078110962

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