RNOA =(utilidad operativa)/(Activos operativos netos)
RNOA = ROOA + [[OLLEV.sup.*] (RNOA - tasa de endeudamiento del mercad)] (2A)
Aporte del apalancamiento operativo y financiero al ROCE por sector--Empresas Solventes Sector Aporte Aporte ROCE operativo Financiero (RNOA) A Agricultura, ganaderia, 3,39% 0,84% 4,22% caza y silvicultura C Explotacion de minas y 17,89% -1,42% 16,46% canteras D Industria manufacturera 10,79% -1,84% 8,95% F Construccion 7,01% 0,00% 7,01% G Comercio al por mayor 10,11% -0,50% 9,60% y por menor H Hoteles, restaurantes, 13,60% -3,38% 10,22% bares y similares I Transporte, 9,70% 0,19% 9,89% almacenamiento y comunicaciones K Actividades inmobiliarias, 16,90% 1,34% 18,24% empresariales y de alquiler Fuente: Elaboracion Propia Tabla 7.
The results in Table 2 and Figure 1 indicate that, on average, Q-scores do discriminate on future core RNOA. The RNOA for high-Q groups are declining prior to Year 0, consistent with conservative accounting's increasing reserves and depressing earnings.
For the first set, we calculated median differences in core RNOA between Year 0 and each of the five years before and after Year 0 for high-Q, medium-Q, and low-Q groups, for each of the 21 years.
We have attempted to control for the typical mean reversion of RNOA by comparing the evolution of core RNOA across Q groups for firms first grouped on the level of core RNOA.
We next estimated 21 annual linear regressions of one-year-ahead core RNOA (in t + 1) on core RNOA and Q-scores in the scoring year, t.
Additional tests reveal that both measures, [Q.sup.A] and [Q.sup.B], are effective in forecasting future core RNOA. However, [Q.sup.A] appears to be somewhat more effective than [Q.sup.B], consistent with our earlier conjecture that the lower serial correlation in [Q.sup.A] than in [Q.sup.B] indicated that [Q.sup.A] better captures the temporary effect of the conservative accounting on earnings.
RNOA is the appropriate metric to assess management's operating decision to invest the assets in Bank A because it is effectively insulated from the financing decision.
Both firms have virtually identical operating performance (RNOA).
Using the original DuPont model, we would infer that Target's operating performance (ROA) is 33% better than Costcos--a much different conclusion than was reached using RNOA. And we would gather that Target uses somewhat more leverage than Costco (2.42 vs.
We would not know the spread between operating performance (RNOA) and the cost of debt (NBC).