h. ROE = (RNOA + (Spread FLEV)) x NCI ratio E3-42. Directly Compute Nonoperating Return with Negative NNO Selected balance sheet and income statement information from Amgen Inc. for 2018 follows ($ millions). Cambridge Business Publishers 3-49 Module 3 Profitability Analysis and Interpretation Net income.. Net operating profit after tax (NOPAT) Net nonoperating expense (NNE) Average net operating assets (NOA). Average net nonoperating obligations (NNO). Average total equity. $ 8,394 8,954 560 18,015 (856) 18,871 Compute the following measures. a. Return on equity = Net income/Average total equity b. RNOA = NOPAT/Average NOA c. Nonoperating return = ROE - RNOA d. NNEP = NNE/Average NNO e. Spread = RNOA - NNEP f. FLEV = Average NNO/Average total equity 8. ROE = RNOA + (Spread X FLEV)