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
Brîndescu – Olariu, D. (2016). Profitability ratio as a tool for
bankruptcy prediction. SEA: Practical Application of Science IV(11),
369-72. Retrieved from
Subramanyam, K. R. (2014). Financial statement analysis (11th ed.). New York, NY: McGraw Hill. ISBN13: 9780078110962