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Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. $ millions 2019 2018 2017 Net operating profit after

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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) $2,349 $2,440 Net income 2,269 2,307 Total assets 14,315 14,127 $15,941 Equity 2,875 3,091 3,091 Net operating profit after tax (NOA) 8,426 8,989 9,585 Treasury stock 17,084 15,791 14,006 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 % % % % ROA ROE % % b. Adjust equity and total assets for the amount of treasury stock. $ millions 2019 2017 Assets, restated $ $ $ Equity, restated $ $ 2018 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 % % ROA % % ROE % %

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