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Answers are not 41.7, 15.1, 24.7, and 11.7 Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from Amazon

Answers are not 41.7, 15.1, 24.7, and 11.7

Compute and Interpret Coverage, Liquidity and Solvency Ratios

Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows.

$ millions 2018 2017 2016
Net operating profit after tax (NOPAT) $12,186 $3,576 $2,837
Net income 11,181 3,367 2,632
Operating profit 13,787 4,558 4,646
Interest expense 1,474 882 503
Cash from operating activities 34,103 20,385 19,095
Current assets 83,362 66,819 50,817
Current liabilities 71,127 60,198 45,569
Cash and cash equivalents 35,243 22,779 21,461
Marketable securities 10,545 11,615 7,378
Total debt 24,435 25,733 8,002
Assets 180,539 145,754 92,576
Liabilities 123,863 107,745 66,682
Equity 45,291 28,817 20,056
Net operating assets (NOA) 26,826 22,325 1,038

a. Compute profitability measures RNOA and ROE for 2018 and 2017. In which year are the measures stronger? Round answers to one decimal place (ex: 0.2345 = 23.5%).

2018 2017
RNOA Answer

Answer

ROE Answer

Answer

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