Usually, core RNOA is defined as Core operating income/NOA. But, in this case, Bill plc has been able to generate increasing operating income in its business while (with the exception of 2004) maintaining NOA almost flat (and almost zero). So, we focus on the numerator (core operating income):

2005 2004 2003 2002

Sales 39.79 36.83 32.19 28.36

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

Core PM from sales 27.51% 16.78% 20.47% 19.78%

(after tax)

This PM is determined as follows:

Gross margin 84.42% 81.75% 81.17% 79.90%

R&D/Sales (15.53) (21.12) (20.50) (22.21)

S&M/Sales (21.81) (22.54) (23.45) (22.04)

G&A/Sales (10.48) (13.58) ( 7.55) ( 6.49)

Taxes/Sales ( 9.07) ( 7.74) ( 9.20) ( 9.38)

Core PM from sales 27.51% 16.78% 20.47% 19.78%

As an analyst, What do you observe from above statement? and based your finding what questions could be asked at the analysts’ conference call with management?

(Hint: you should explain the changes of operating income and the key drivers which have caused this?)

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"