The fiscal 2016 financial statements for Walgreens Boots Alliance, Inc., report net sales of $117,351 million, net operating profit after tax of $4,687 million, net operating assets of $39,502 million. The 2015 balance sheet reports net operating assets of $42,683 million.
Walgreen's 2016 net operating asset turnover is:
A) 11.5%
B) 2.86
C) 13.3%
D) 2.97
E) There is not enough information to calculate the ratio.

Question

Quizplus · Accepted Answer

Net operating asset turnover is calculated as net sales divided by average net operating assets. For Walgreens in 2016, this is $117,351 million / (($39,502 million + $42,683 million) / 2) = $117,351 million / $41,092.5 million = 2.86.

The Fiscal 2016 Financial Statements for Walgreens Boots Alliance, Inc