Using the two most recent years of data, calculate the business's Return on Equity (ROE) using the Dupont analysis formula (include the work for the calculation--each part of the formula must be shown). Provide an analysis of of what additional information the business can gain from using the Dupont analysis that they wouldn't have been able to obtain using the simplified ROE formula.

Consolidated Balance Sheets December 31, 2019 2018 $ 959 $ 474 369 413 231 211 81 78 146 212 1,786 1,388 10,332 433 9,525 293 10,765 (in millions, except per share data) ASSETS CURRENT ASSETS Cash and cash equivalents Investment securities Receivables, less allowance (2019 - $1:2018-$1) Inventories, less allowance (2019 - $22: 2018-$18) Prepaid expenses and other Total current assets PROPERTY AND EQUIPMENT Flight equipment Predelivery deposits for flight equipment Total flight equipment and predelivery deposits, gross Less accumulated depreciation Total flight equipment and predelivery deposits, net Other property and equipment Less accumulated depreciation Total other property and equipment, net Total property and equipment, net OPERATING LEASE ASSETS OTHER ASSETS Investment securities Restricted cash Other Total other assets TOTAL ASSETS 9,818 2,448 2,768 7,997 1,145 528 7,370 1,074 461 617 613 8.614 7,983 912 1,056 3 CN 59 59 544 470 806 $ 532 10,959 11,918 $ Consolidated Balance Sheets December 31, 2019 2018 $ 401 $ 437 1,119 376 1,035 313 295 128 298 133 344 309 2,663 1,990 690 2,525 1,361 798 (in millions, except per share data) LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable Air traffic liability Accrued salaries, wages and benefits Other accrued liabilities Current operating lease liabilities Current maturities of long-term debt and finance lease obligations Total current liabilities LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS LONG-TERM OPERATING LEASE LIABILITIES DEFERRED TAXES AND OTHER LIABILITIES Deferred income taxes Air traffic liability - loyalty non-current Other Total deferred taxes and other liabilities COMMITMENTS AND CONTINGENCIES (NOTES 11& 12) STOCKHOLDERS' EQUITY Preferred stock, $0.01 par value: 25 shares authorized, none issued Common stock. $0.01 par value: 900 shares authorized, 427 and 422 shares issued and 282 and 306 shares outstanding at 2019 and 2018, respectively Treasury stock, at cost; 145 and 116 shares at 2019 and 2018, respectively Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Total stockholders' equity TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,251 481 44 1,112 447 31 1,776 1,590 4 4 (1,782) 2,253 (1,272) 2,203 3,753 (3) 4,322 2 4,799 11,918 4,685 10,959 $ $ 2019 2018 2017 2016 201512 $ 8,094 $ 7,658 S 7,012 $ 6,584 $ 6,416 1,899 1,348 1,847 2,320 1.363 1,887 438 1,074 1,698 2,044 1,540 474 462 342 357 393 469 424 345 525 99 104 102 110 122 290 294 271 263 264 619 625 622 563 490 1,106 932 866 749 1,060 435 14 7,392 6,039 (in millions except per share data) STATEMENTS OF OPERATIONS DATA Operating revenues Operating expenses: Aircraft fuel and related taxes Salaries, wages and benefits Landing fees and other rents Depreciation and amortization Aircraft rent Sales and marketing Maintenance, materials and repairs Other operating expenses Special items Total operating expenses Operating income Other income (expense) Income before income taxes Income tax expense (benefityem NET INCOME Earnings per common share: Basic Diluted202144 Other Financial Data: Operating margin Pre-tax margins Net cash provided by operating activities Net cash (used in) investing activities Net cash provided by (used in)financing activities 7.294 800 5,324 1,260 5,200 1,216 266 973 (32) (47) (55) (119) 918 768 199 219 30 (96) 1,164 437 1,097 420 (222) $ 1,140 $ 569 $ 189 $ 727 $ 677 S 1.92 $ 3.47 09 2.23 S 2.15 $ 0.60 $ 0.60 $ 1.91 $ 3.45 $ 2.13 S 1.98 9.9% 3.5% 13.9% 19.1% 9.5% 17.7% 2.9% $ 1,200 (1,157) 131 $ 1,449 (1,129) 19.0% 17.1% $ 1,598 (1,134) 13.1% $ 1,379 (979) (536) $ 1,632 (1,046) (472) 165 (487) Consolidated Balance Sheets December 31, 2019 2018 $ 959 $ 474 369 413 231 211 81 78 146 212 1,786 1,388 10,332 433 9,525 293 10,765 (in millions, except per share data) ASSETS CURRENT ASSETS Cash and cash equivalents Investment securities Receivables, less allowance (2019 - $1:2018-$1) Inventories, less allowance (2019 - $22: 2018-$18) Prepaid expenses and other Total current assets PROPERTY AND EQUIPMENT Flight equipment Predelivery deposits for flight equipment Total flight equipment and predelivery deposits, gross Less accumulated depreciation Total flight equipment and predelivery deposits, net Other property and equipment Less accumulated depreciation Total other property and equipment, net Total property and equipment, net OPERATING LEASE ASSETS OTHER ASSETS Investment securities Restricted cash Other Total other assets TOTAL ASSETS 9,818 2,448 2,768 7,997 1,145 528 7,370 1,074 461 617 613 8.614 7,983 912 1,056 3 CN 59 59 544 470 806 $ 532 10,959 11,918 $ Consolidated Balance Sheets December 31, 2019 2018 $ 401 $ 437 1,119 376 1,035 313 295 128 298 133 344 309 2,663 1,990 690 2,525 1,361 798 (in millions, except per share data) LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable Air traffic liability Accrued salaries, wages and benefits Other accrued liabilities Current operating lease liabilities Current maturities of long-term debt and finance lease obligations Total current liabilities LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS LONG-TERM OPERATING LEASE LIABILITIES DEFERRED TAXES AND OTHER LIABILITIES Deferred income taxes Air traffic liability - loyalty non-current Other Total deferred taxes and other liabilities COMMITMENTS AND CONTINGENCIES (NOTES 11& 12) STOCKHOLDERS' EQUITY Preferred stock, $0.01 par value: 25 shares authorized, none issued Common stock. $0.01 par value: 900 shares authorized, 427 and 422 shares issued and 282 and 306 shares outstanding at 2019 and 2018, respectively Treasury stock, at cost; 145 and 116 shares at 2019 and 2018, respectively Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Total stockholders' equity TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,251 481 44 1,112 447 31 1,776 1,590 4 4 (1,782) 2,253 (1,272) 2,203 3,753 (3) 4,322 2 4,799 11,918 4,685 10,959 $ $ 2019 2018 2017 2016 201512 $ 8,094 $ 7,658 S 7,012 $ 6,584 $ 6,416 1,899 1,348 1,847 2,320 1.363 1,887 438 1,074 1,698 2,044 1,540 474 462 342 357 393 469 424 345 525 99 104 102 110 122 290 294 271 263 264 619 625 622 563 490 1,106 932 866 749 1,060 435 14 7,392 6,039 (in millions except per share data) STATEMENTS OF OPERATIONS DATA Operating revenues Operating expenses: Aircraft fuel and related taxes Salaries, wages and benefits Landing fees and other rents Depreciation and amortization Aircraft rent Sales and marketing Maintenance, materials and repairs Other operating expenses Special items Total operating expenses Operating income Other income (expense) Income before income taxes Income tax expense (benefityem NET INCOME Earnings per common share: Basic Diluted202144 Other Financial Data: Operating margin Pre-tax margins Net cash provided by operating activities Net cash (used in) investing activities Net cash provided by (used in)financing activities 7.294 800 5,324 1,260 5,200 1,216 266 973 (32) (47) (55) (119) 918 768 199 219 30 (96) 1,164 437 1,097 420 (222) $ 1,140 $ 569 $ 189 $ 727 $ 677 S 1.92 $ 3.47 09 2.23 S 2.15 $ 0.60 $ 0.60 $ 1.91 $ 3.45 $ 2.13 S 1.98 9.9% 3.5% 13.9% 19.1% 9.5% 17.7% 2.9% $ 1,200 (1,157) 131 $ 1,449 (1,129) 19.0% 17.1% $ 1,598 (1,134) 13.1% $ 1,379 (979) (536) $ 1,632 (1,046) (472) 165 (487)