Return on Investment, Financial Leverage, and DuPont Analysis The following tables provide information from the recent annual reports of HD Rinker, AG.

Balance sheets	2019	2018	2017	2016
Total assets	6,108	6,451	7,173	6,972
Total liabilities	5,970	4,974	4,989	5,097
Total shareholders' equity	138	1,477	2,184	1,875

Income statements 52 weeks ended	2019	2018	2017
Sales revenue	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
Net earnings	850	805	448

a. Calculate HD Rinkers 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	Answer
2018	Answer
2017	Answer

b. Calculate HD Rinkers 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	Answer	Answer
2018	Answer	Answer
2017	Answer	Answer

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	FL
2019	Answer	Answer	Answer
2018	Answer	Answer	Answer
2017	Answer	Answer	Answer