L01, 6, 7 E3-39.Compute, Disaggregate, and Interpret ROE and RNOA Graphical representations of the Ingersoll Rand 2018 income statement and average balance sheets

(2017-2018) follow .

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

b. Disaggregate RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT). What observations can we make about NOPM and NOAT?

c. Compute nonoperating return for 2018.

Transcribed Image Text:

Income Statement 2018 Average Balance Sheet 2017-2018 $54.4 $7,081.5 $15,668.2 $14,088.7 $4,077.7 $16,817.7 $6,830.6 $1,337.6 $1,226.4 Operating assets Nonoperating assets Operating expenses including tax on operating profit Operating liabilities Nonoperating liabilities Earing attributable to company shareholders Sales Company shareholders' Noncontrolling interest equity