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b. Adjust equity and total assets for the amount of treasury stock. $ millions 2019 Assets, restated S Equity, restated 31594 $ 20756$ 2018 2017

b. Adjust equity and total assets for the amount of treasury stock. $ millions 2019 Assets, restated S Equity, restated 31594 $ 20756$ 2018 2017 30051 $ 29886 19597 $ 17713 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 96 09 ROA 0% 0% ROE 0% 0% c. Which profitability measures (from part a or part b) better reflect the company's profit levels duri Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. S millions 2019 2018 2017 Net operating profit after tax (NOPAT) $2,480 $2,575 Net income 2,395 2,435 Total assets Equity 13,561 13.383 $15,102 2,723 2,929 2.929 Net operating profit after tax (NOA) Treasury stock 7.982 8,516 9,080 18,033 16,668 14,784 a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Metric 2019 2018 RNOA 30.1 % 29.3 % ROA 17.896 17.1 96 ROE 84.7 % 83.1 % b. Adjust equity and total assets for the amount of treasury stock. $ millions Assets, restated 2019 2018 2017 Equity, restated 31,594 $ 20,756 $ 30,051 $ 29,886 19,597 $ 17,713 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 0% 0% ROA 096 096 ROE 0% 096

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