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