P3-55.Using Compustat Data and Data Visualization Software to Interpret ROE, RNOA, and ROA Consider the data graphics for Boston Scientific at the start of the Module. Access the Excel file of Compustat data available at the MBC website and use data visualization software such as Power BI or Tableau, to answer the required.

Required

a. In the Excel file, calculate ROE, ROA and RNOA for each firm. Use year-end balance sheet numbers in the denominator for all three return ratios. Simplify the calculations by using the following variable definitions.

• Net income attributable to common= Net income - Noncontrolling interest on income statement.

• Operating assets= Total assets - Cash and short-term investments.

• Operating liabilities= Total liabi lities - Total debt.

• NOPBT = Pretax income + Interest expense - Interest income.

• Tax rate = 22% for 20 18 onward and 37% for all other years.

• Tax on operating profit = Tax expense + Tax rate x (Interest expense - Interest income)

• NOPAT = NOPBT - Tax on operating profit.

b. Create the graphic for firms in the following three industries. Display the median ROE, ROA, and RNOA for each year.

• Household Durables (GIC 2520 IO).

• Textiles, Apparel and Luxury goods (GIC 252030)

• Food and Staples (GIC 301010)

c. Compare the three graphics. What differences or s imilarities do we observe?