1.) Bankruptcy Risk and Z-Score Analysis

Following are selected ratios for Logitech International SA for the companys 2019 fiscal year.

Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.

in thousands (except price per share and shares outstanding)
Current assets	$1,350,436	EBIT	$263,194
Current liabilities	$552,721	Total liabilities	$652,794
Total assets	$1,558,575	Sales revenue	$2,147,008
Retained earnings	$1,365,036	Shares outstanding	165,862,887
Price per share	$39.34

Compute and interpret the Altman Z-score.

Note: Convert shares outstanding to "in thousands" for your computation.

	Z-score
	Answer

2.)

Compute and Interpret Ratios

Selected balance sheet and income statement information from Illinois Tool Works follows.

$ millions	2019	2018	2017
Net operating profit after tax (NOPAT)	$2,480	$2,575
Net income	2,395	2,435
Total assets	13,561	13,383	$15,102
Equity	2,723	2,929	2,929
Net operating profit after tax (NOA)	7,982	8,516	9,080
Treasury stock	18,033	16,668	14,784

a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company.

Note: Round answers to one decimal place (ex: 0.2345 = 23.5%).

Metric	2019	2018
RNOA	Answer	Answer
ROA	Answer	Answer
ROE	Answer	Answer

b. Adjust equity and total assets for the amount of treasury stock.

$ millions	2019	2018	2017
Assets, restated	Answer	Answer	Answer
Equity, restated	Answer	Answer	Answer

Using these restated numbers, recompute RNOA, ROA and ROE for both years. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%).

Metric	2019	2018
RNOA	Answer	Answer
ROA	Answer	Answer
ROE	Answer	Answer

c. Which profitability measures (from part a or part b) better reflect the companys profit levels during the two years? Answer part a. - using reported numbers part b. - using restated number

Of the three measures, which one is least influenced by the companys stock repurchase activity? Answer part a. ROA part b. ROE part c. RNOA