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Disaggregate Traditional DuPont ROE Graphical representations of the KLA-Tencor 2018 income statement and average balance sheet numbers (2017-2018) follow ($ thousands). Pexp=2,499,50]xexp=653,666vetexpnet=81,2let[ncome=802,2s2,499,507 Operating asseto 14

image text in transcribed Disaggregate Traditional DuPont ROE Graphical representations of the KLA-Tencor 2018 income statement and average balance sheet numbers (2017-2018) follow (\$ thousands). Pexp=2,499,50]xexp=653,666vetexpnet=81,2let[ncome=802,2s2,499,507 Operating asseto 14 Nonoperating assots 16 Operating liabietios Nonoperating Jabitales n Equity a Derating expenses D Tax expense interest exponses net Not income a. Compute return on equity (ROE). b. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage. c. Calculate the profitability and productivity components of ROA. d. Confirm the ROE from part a, above with the full DuPont disaggregation: ROE=PMATFL

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