Use the ROIC and its decomposition framework introduced by KGW, explain why capitalizing operating lease for Qantas is important to understand its true underlying performance. Some latest financial year end information of Qantas is provided below. (Note: No calculation is required. An indication of "increase" or "decrease" of ROIC components would be sufficient to discuss the importance of capitalizing operating lease to understand the performance of Qantas.) (12 marks) Qantas Airways Limited - Selected Financial Information 2019 Note $17,966 $million Operating Revenue Operating Lease Expense Underlying Operating EBIT Implied Interest Rate $490 Aircrafts and non-aircrafts $1,747 5.08% $3,249 Capitalized Operating Lease PPE Operating Invested Capital Interest expense/Previous year end debt Assume leased asset life of 10 years. KGW formula. Net property, plant and equipment Average of the period $12,977 $8,936 ROIC 13.69% Reduces to 10.98% if operating lease is capitalized Payable for the life of leased asset, up to 30 years. Operating Lease Commitment $1,937 Use the ROIC and its decomposition framework introduced by KGW, explain why capitalizing operating lease for Qantas is important to understand its true underlying performance. Some latest financial year end information of Qantas is provided below. (Note: No calculation is required. An indication of "increase" or "decrease" of ROIC components would be sufficient to discuss the importance of capitalizing operating lease to understand the performance of Qantas.) (12 marks) Qantas Airways Limited - Selected Financial Information 2019 Note $17,966 $million Operating Revenue Operating Lease Expense Underlying Operating EBIT Implied Interest Rate $490 Aircrafts and non-aircrafts $1,747 5.08% $3,249 Capitalized Operating Lease PPE Operating Invested Capital Interest expense/Previous year end debt Assume leased asset life of 10 years. KGW formula. Net property, plant and equipment Average of the period $12,977 $8,936 ROIC 13.69% Reduces to 10.98% if operating lease is capitalized Payable for the life of leased asset, up to 30 years. Operating Lease Commitment $1,937