a. Compute profitability measures RNOA and ROE for 2018 and 2017. In which year are the measures stronger? Round answers to one decimal place (ex: 0.2345 = 23.5%). 2018 2017 RNOA Answer Answer ROE Answer Answer b. Compute coverage metrics Times interest earned and Cash from operating activities to total debt for 2018 and 2017. Round answers to two decimal places. 2018 2017 Times interest earned Answer Answer Cash from operating activities to total debt Answer Answer
a. Compute profitability measures RNOA and ROE for 2018 and 2017. In which year are the measures stronger? Round answers to one decimal place (ex: 0.2345 = 23.5%). 2018 2017 RNOA Answer Answer ROE Answer Answer b. Compute coverage metrics Times interest earned and Cash from operating activities to total debt for 2018 and 2017. Round answers to two decimal places. 2018 2017 Times interest earned Answer Answer Cash from operating activities to total debt Answer Answer
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Compute and Interpret Coverage, Liquidity and Solvency Ratios
Selected
| $ millions | 2018 | 2017 | 2016 |
|---|---|---|---|
| $10,978 | $3,222 | $2,556 | |
| Net income | 10,073 | 3,033 | 2,371 |
| Operating profit | 12,421 | 4,106 | 4,186 |
| Interest expense | 1,417 | 848 | 484 |
| Cash from operating activities | 30,723 | 18,365 | 17,203 |
| Current assets | 75,101 | 60,197 | 45,781 |
| Current liabilities | 68,391 | 57,883 | 43,816 |
| Cash and cash equivalents | 31,750 | 20,522 | 19,334 |
| Marketable securities | 9,500 | 10,464 | 6,647 |
| Total debt | 23,495 | 24,743 | 7,694 |
| Assets | 162,648 | 131,310 | 83,402 |
| Liabilities | 119,099 | 103,601 | 64,117 |
| Equity | 43,549 | 27,709 | 19,285 |
| Net operating assets (NOA) | 25,794 | 21,466 | 998 |
a. Compute profitability measures RNOA and ROE for 2018 and 2017. In which year are the measures stronger?
Round answers to one decimal place (ex: 0.2345 = 23.5%).
| 2018 | 2017 | |
|---|---|---|
| RNOA | Answer
|
Answer
|
| ROE | Answer
|
Answer
|
b. Compute coverage metrics Times interest earned and Cash from operating activities to total debt for 2018 and 2017.
Round answers to two decimal places.
| 2018 | 2017 | |
|---|---|---|
| Times interest earned | Answer
|
Answer
|
| Cash from operating activities to total debt | Answer
|
Answer
|
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