13-56.Compute, Disaggregate, and Interpret ROE and RNOA Headquartered in Calgary, Alberta, Husky Energy Inc. is a publicly traded, integrated energy company.

Selected fiscal year balance sheet and income statement information for Husky Energy follow (Canadian

$ millions).

C$ millions Revenues, net . . ....... . .. .. .. . ...... . . • .. • .... •. . • .

Net income attributable to Husky ... .... . . .. • .. • .. . .. . . ..

Pretax NNE .. .. . ...... .. .. .. .. . ...... . . . .. . .... .. . . .

Operating assets .. . ............ . . .. . . .. • .. • ... . • .. • .

Operating liabilities ... ... . . ..... .. ... . . ... ... . . .. . ... .

Equity attributable to Husky shareholders ... . •. . • .. ..•....

Tax rate ......... . ............ ... .. . .. . .. ... . . .. . . .

2018

$22,252 1,457 236 32,231 9,864 19,602 27.20%

2017

$30,222 9,520 17,956

a. Compute the 2018 return on equity (ROE) and the 2018 return on net operating assets (RNOA).

b. Disaggregate RNOA into net operating profit margin (NOPM) and net operating asset turnover

(NOAT).

c. Compute the percentage of RNOA to ROE, and compute Husky's nonoperating return for 2018.