Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Selected balance sheet and income statement information from Illinois Tool Works follows. S millions 2019 2018 2017 Net operating profit after tax (NOPAT) $2.480 $2,575
Selected balance sheet and income statement information from Illinois Tool Works follows. S millions 2019 2018 2017 Net operating profit after tax (NOPAT) $2.480 $2,575 Net income 2,395 2.435 Total assets 13.561 13.383 $15,102 Equity 2.723 2.929 2.929 Net operating profit after tax (NOA) 7,982 8,516 9,080 Treasury stock 18,033 16,668 14,784 a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the comp Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Metric 2019 2018 RNOA ROA ROE %6 b. Adjust equity and total assets for the amount of treasury stock Smillions 2019 2018 2017 Assets, restated $ Equity, restated Using these restated numbers, recompute RNOA, ROA and ROE for both years. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Metric 2019 2018 RNOA ROA ROE 96 C. Which profitability measures (from part a or part b) better reflect the company's profit levels during the two years? of the three measures, which one is least influenced by the company's stock repurchase activity
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started