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Return on Investment, Financial Leverage, and DuPont Analysis The following tables provide information from the recent annual reports of HD Rinker, AG. Balance sheets
Return on Investment, Financial Leverage, and DuPont Analysis The following tables provide information from the recent annual reports of HD Rinker, AG. Balance sheets Total assets Total liabilities 2019 2018 2017 2016 6,108 6,451 7,173 6,972 5,970 4,974 4,989 5,097 Total shareholders' equity 138 Income statements 52 weeks ended Sales revenue 1,477 2,184 1,875 2019 2018 2017 10,364 9,613 8,632 Earnings before interest and taxes 1,473 1,459 887 Interest expense 246 208 237 Earnings before income taxes 1,227 1,251 650 Income tax expense 377 446 202 850 805 448 Net earnings a. Calculate HD Rinker's return on equity (ROE) for fiscal years 2019, 2018, and 2017. Round answers to one decimal place (i.e., 0.2568 = 25.7%). Do not round until your final answer. 2019 2018 2017 % % % b. Calculate HD Rinker's return on assets (ROA) and return on financial leverage (ROFL) for each year. Assume a statutory tax rate of 25%. Round answers to one decimal place (i.e., 0.2568 = 25.7%). Do not round until your final answer. ROA ROFL 2019 % 2018 % 2017 % % % % c. Use the DuPont formulation in the Business Insight on page 230 to analyze the variations in HD Rinker's ROE over this period. Calculate net profit margin, asset turnover, and financial leverage. Do not round until your final answer. Round answers to one decimal place (i.e., 0.2568 = 25.7%). NPM AT 2019 2018 % % 2017 % FL
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