A company has sales of $200 million, NOPAT of $12 million, net income of $8 million, net operating working capital (NOWC) of $10 million, total net operating capital of $100 million, and total assets of $110 million. What is its operating profitability (OP) ratio?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter2: Financial Statements, Cash Flow, And Taxes
Section2.8: Performance Evaluation
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A company has sales of $200 million, NOPAT of $12 million, net
income of $8 million, net operating working capital (NOWC) of $10
million, total net operating capital of $100 million, and total assets
of $110 million. What is its operating profitability (OP) ratio?

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