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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). KLA-Tencor Income Statement 2018

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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). KLA-Tencor Income Statement 2018 KLA-Tencor Average Balance Sheet 2017-2018 $1,473,464 $2,627 235.5 $802,265 $2.583,930 O $653,666 - -$2,499,507 $2,948,529 $81 263 $1,518,371/ Operating assets Nonoperating assets Operating liabilities Nonoperating liabilities Operating expenses Interest expense, net Tax expense Net Income Equity a. Compute return on equity (ROE). Round answer to two decimal places (ex: 0.12345 = 12.35%) ROE 20.8 X % b. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage. Round answers to two decimal places (ex: 0.12345 = 12.35%) ROA 9.34 X % FL 2.19 X C. Calculate the profitability and productivity components of ROA. Round profit margin (PM) to two decimal places (ex: 0.12345 = 12.35%) Round asset turnover (AT) to three decimal places. PM 23.57 X % AT 0.4 X d. Confirm the ROE from part a. above with the full DuPont disaggregation: ROE = PM * AT * FL. Round answer to two decimal places (ex: 0.12345 = 12.35%) 0 X % Compute and Compare ROE, ROA, and RNOA Graphical representations of the KLA-Tencor 2018 income statement and average balance sheet numbers (2017-2018) follow ($ thousands). KLA-Tencor Average Balance Sheet 2017-2018 KLA-Tencor Income Statement 2018 $1,473,464 $802,265 $2,627,235.5 $2,583,930 $653,666 - $2,499,507 $2,948,529 $81,263 $1,518,371 Operating liabilities Operating assets Nonoperating assets Nonoperating liabilities Equity Operating expenses Tax expense Interest expense, net Net Income Note: Round all answers to two decimal places (ex: 0.12345 = 12.35%) Note: Assume a statutory tax rate of 22%. a. Compute return on equity (ROE). 20.43 X % b. Compute return on assets (ROA). 0 X % c. Compute return on net operating assets (RNOA). 0 X %

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