Using kroger company most current year end financial statements, compute these ratios for just one year.

1. Compute the company's RNOA.

2. Compute the company's ROE.

3. Comment on the company's difference between RNOA and ROE.

THE KROGER CO. CONSOLIDATED BALANCE SHEETS February 1, February 2019 5 422 399 1,179 (Inmens, wept paramos) ASSETS Current assets Cash and temporary cash investments Store deposits in-transit Receivables FIFO inventory LIFO reserve Assets held for sale Prepaid and other current assets Total current assets 464 (130 1,585 R123 522 1. 166 302 100 21,69 21,871 6,814 1066 3016 1,539 Property, plant and equipment, net Operating lease assets Intangibles, net Goodwill Other assets 1,258 1,335 4256 38,113 Total Assets 13 1965 592 6. 1,168 1,221 LIABILITIES Current liabilities Current portion of long-term debt including obligations under finance leases Current portion of operating lease liabilities Trade accounts payable Accrued salaries and wages Liabilities held for sale Other current liabilities Total current liabilities 4.14 14,243 TD 14214 120017 12.111 6501 1.466 1 102 404 Long-term debt including obligations under finance leases Noncurrent operating lease liabilities Deferred income taxes Pension and postretirement benefit obligations Other long-term liabilities 16 Total Liabilities Commitments and contingencies see Note 13 SHAREHOLDERS' EQUITY Operating S Intangibles, net Goodwill Other assets 1.066 3.036 1,519 1,25 3.07 Total Assets 4514 18 IN 5 5 3,157 LIABILITIES Current liabilities Current portion of long-term debe including obligations under finance less Current portion of operating lease liabilities Trade accounts payable Accrued salaries and wages Liabilities held for sale Other current liabilities Total current liabilities 1953 598 6149 1.168 6,059 1217 51 3,780 14,214 4.164 14.143 12,072 12,111 6.505 1,456 608 1.750 Long-term debt including obligations under finance leases Noncurrent operating lease liabilities Deferred income taxes Pension and postretirement benefit obligations Other long-term liabilities 1.56 1.88 031 Total Liabilities Commitments and contingencies see Note 13 SHAREHOLDERS' EQUITY 1913 1,918 3.311 (610 20978 01:46 19M ( 11 Preferred shares, $100 per per shars, 5 shares authorized and issued Common shares, Si par per share, 2.000 shares authorized: 1918 shares issued in 2019 and 2018 Additional paid-in capital Accumulated other comprehensive loss Accumulated earnings Common shares in treasury, atost, 1,130 shares in 2019 and 1,120 shares in 2018 Total Shareholders'Equity - The Kroger Co. Noncontrolling interests (5) 573 75 Total Equity 45.256 Total Liabilities and Equity The accompanying notes are an integral part of the consolidated financial statements 45 CONSOLIDATED STATEMENTS OF OPERATIONS Years Ended February 1, 2020, February 2, 2019 and February 3, 2018 (la millas, except per shares) 2019 BOB Sales 12226 121 52 123,280 Operating expenses Merchandise costs, including advertising, warehousing, and transportation, excluding items shown separately below Operating, general and administrative Rent Depreciation and amortization Operating profit 95,294 21.208 MA 2.649 95,103 20,756 854 2,465 95.511 21.510 911 2,436 2.251 2.614 2612 (603 M Other income (expense) Interest expense Non-servide component of company sponsored pension plan costs Mark to market pain on ende securities Gain on sale of businesses Net earnings before income tax (benefit) expense (26) 228 157 176 1,981 3.978 1,484 419 9.00 (405 Income tax (benefit) expense Net earnings including noncontrolling interests Netloss attributable to moncontrolling interests 1.512 (147 3,078 32) 1.589 (1) 1921 1659 Net earnings attributable to The Kroger Co. 205 30 s $95 799 2.09 204 3.76 Net carnings attributable to The Kroger Co. per basic common share Average number of common shares used in basic calculation Net earnings attributable to The Kroger Co, per diluted common share Average number of common shares used in diluted calculation 900 SIR sos The accompanying notes are an integral part of the consolidated financial statements of common shares used in diluted calculation 2004 805 SIS 904 The accompanying notes are an integral part of the consolidated financial ents. 46 THE KROGER CO. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Yeuns Ended February 1, 2020, February 2, 2019 and February 3, 2018 2019 Net earnings including noncontrolling interests 1,512 3,0TX 1,899 Other comprehensive income (loss) Realized gains on available for sale securities, net of income tax!!) Change in pension and other postretirement defined benefit plans, met of income tax2) Unrealized gains and losses on cash flow hedging activities, net of income tax Amortization of unrealized gains and losses on cash flow hedging activities, net of income tax Cumulative effect of accounting change (105 (47) (4) 147 (23) (145) Fall. (294 115 Total other comprehensive income (loss) Comprehensive income Comprehensive loss attributable to noncontrolling interests Comprehensive income attributable to The Kroger Co. 1.218 (147) 1,365 3.203 (32) 3,25 2,151 (1) Amount is net of tax expense (benefit) of (SI) in 2018 and 1 in 2017. (2) Amount is net of tax expense (benefit) of (S13) in 2019, S45 in 2018 and SRI in 2017. (3) Amount is niet of tax expense (benefit) of ($17) in 2019. (58) in 2018 and SO in 2017. (4) Amount is net of tax expense of $3 in 2019 and 53 in 2018 and 53 in 2017. (5) Related to the adoption of Accounting Standards Update ("ASU 5 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," (see Note 18 for additional details). The accompanying notes are an integral part of the consolidated financial statements