When calculating return on net operating assets analysts sometimes make adjustments to the net operating asset base used in the denominator or the ratio. Three possible adjustments are listed below. Explain what these adjustments are, and discuss the merits of these adjustments.

1. Non-operating asset adjustment
2. Intangible asset adjustment
3. Accumulated depreciation adjustment

Question

1. Non-operating asset adjustment
2. Intangible asset adjustment
3. Accumulated depreciation adjustment

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The Answer of When calculating return on net operating assets analysts sometimes make adjustments to the net operating asset base used in the denominator or the ratio. Three possible adjustments are listed below. Explain what these adjustments are, and discuss the merits of these adjustments.

1. Non-operating asset adjustment
2. Intangible asset adjustment
3. Accumulated depreciation adjustment

When Calculating Return on Net Operating Assets Analysts Sometimes Make