Analysis and Interpretation of Company Profitability exercise

Return on net operating assets (RNOA). c. Financial leverage (LEV). d. Net borrowing costs (NBC) e. Spread. f. Return on equity (ROE). g. ROE from the formula: ROE = RNOA + (LEVĂ—Spread). Confirm that this amount equals that computed in part f. 2. Drawing on results from part 1, does P&G depend more on operations (RNOA) or financial leverage to ... ................
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