Projecting NOPAT and NOA Using Parsimonious Forecasting Method Following are Cisco Systems sales, net operating...
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Projecting NOPAT and NOA Using Parsimonious Forecasting Method
Following are Cisco Systems sales, net operating profit after tax (NOPAT), and net operating assets (NOA) for its year ended July 31, 2016 ($ millions).
Sales
$51,469
Net operating profit after tax (NOPAT)
11,066
Net operating assets (NOA)
27,672
Use the parsimonious method to forecast Ciscos sales, NOPAT, and NOA for years 2017 through 2020 using the following assumptions.
Sales growth per year
1.0%
for 2017 and
2.0%
thereafter
Net operating profit margin (NOPM)
21.5%
Net operating asset turnover (NOAT), based on NOA at July 31, 2016
1.86
Rounding instructions:
Round total revenue "unrounded" to two decimal places.
Round total revenue "rounded", NOPAT and NOA answers to the nearest whole number.
For NOPAT and NOA computations, use total revenue "rounded".
$ millions
2017 Est
2018 Est.
2019 Est.
2020 Est.
Total revenue (unrounded)
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Total revenue (rounded)
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NOPAT
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NOA
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