Merck & Company, Inc.

Year 9 Selected Financial Data ($ millions)

Income Statement Data $

Sales Revenue 7,120
Depreciation 230
Interest expense 10
Pretax income 2,550
Income Taxees 900
Net income 1,650

Balance Sheet Data

Current assets 4,850
Fixed assets, net 2,400
Total assets 7,250
Current liabilities 3,290
Long-term debt 100
Shareholders' equity 3,860
Total liabilities and shareholders' equity 7,250
Analysis on RNOA

Company X Company Y Company Z

Sales $ 5,000,000 10,000,000 10,000,000
NOPAT $ 500,000 500,000 100,000
NOA $ 5,000,000 5,000,000 1,000,000
NOPAT margin 10% 5% 1%
NOA turnover 1 2 10
Return on net operating assets 10% 10% 10%