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Selected balance sheet and income statement information from Amgen Inc. for 2018 follows ($ millions). $ millions Net income $12,359 Net operating profit after
Selected balance sheet and income statement information from Amgen Inc. for 2018 follows ($ millions). $ millions Net income $12,359 Net operating profit after tax (NOPAT) 16,884 Net nonoperating expense (NNE) 4,525 Average net operating assets (NOA) 25,945 Average net nonoperating obligations (NNO) 3,109 Average total equity 22,836 Compute the following measures. a. Return on equity = Net income/Average total equity Net income Average total equity b. RNOA = NOPAT/Average NOA NOPAT Average NOA ROE RNOA % c. Nonoperating return = ROERNOA ROE % d. NNEP=NNE/Average NNO NNE Average NNO $ e. Spread RNOA - NNEP RNOA % RNOA Nonoperating return % 0% NNEP % NNEP Spread % % 0% f. FLEV = Average NNO/Average total equity Average NNO Average total equity $ g. ROE = RNOA + (Spread FLEV) RNOA % FLEV Spread FLEV ROE % 0%
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