Compute and Compare ROE, ROA, and RNOA Graphical representations of the KLA-Tencor 2018 income statement and average balance sheet numbers (2017-2018) follow ($ thousands). KLA-Tencor Average Balance Sheet 2017-2018 $1,473,464 S $2,583,930 -$2,627,235.5 OO $653,666- $2,948,529 $1,518.371 Operating assets Nonoperating assets Operating abilities Nonoperating abis Equity KLA-Tencor Income Statement 2018 $802,265 OS $81,263 05 Operating expenses Tax expense Note: Assume a statutory tax rate of 22%. a. Compute return on equity (ROE). Note: 1. Select the appropriate numerator and denominator used to compute ROE from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROE. Numerator Denominator ROE 0 -$2,499.507 Interest expense, net Net Income b. Compute return on assets (ROA). Note: 1. Select the appropriate numerator and denominator used to compute ROA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROA. Denominator ROA Numerator + c. Compute return on net operating assets (RNOA). Note: 1. Select the appropriate numerator and denominator used to compute RNOA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute RNOA. Numerator Denominator RNOA
Compute and Compare ROE, ROA, and RNOA Graphical representations of the KLA-Tencor 2018 income statement and average balance sheet numbers (2017-2018) follow ($ thousands). KLA-Tencor Average Balance Sheet 2017-2018 $1,473,464 S $2,583,930 -$2,627,235.5 OO $653,666- $2,948,529 $1,518.371 Operating assets Nonoperating assets Operating abilities Nonoperating abis Equity KLA-Tencor Income Statement 2018 $802,265 OS $81,263 05 Operating expenses Tax expense Note: Assume a statutory tax rate of 22%. a. Compute return on equity (ROE). Note: 1. Select the appropriate numerator and denominator used to compute ROE from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROE. Numerator Denominator ROE 0 -$2,499.507 Interest expense, net Net Income b. Compute return on assets (ROA). Note: 1. Select the appropriate numerator and denominator used to compute ROA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROA. Denominator ROA Numerator + c. Compute return on net operating assets (RNOA). Note: 1. Select the appropriate numerator and denominator used to compute RNOA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute RNOA. Numerator Denominator RNOA
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Compute and Compare ROE, ROA, and RNOA
Graphical representations of the KLA-Tencor 2018 income statement and average balance sheet numbers (2017-2018) follow ($thousands).
KLA-Tencor
Average Balance Sheet 2017-2018
$1,473,464
$2.583,930
-$2,627,235.5
$1,518,371
Operating assets Nonoperating assets Operating labilities
Nonoperating abis Equity
+
-$2,948,529
Check
OS
05
KLA-Tencor
Income Statement 2018
$802,265
ė
$653,666-
Note: Assume a statutory tax rate of 22%.
a. Compute return on equity (ROE).
Note: 1. Select the appropriate numerator and denominator used to compute ROE from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROE.
Denominator
Numerator
ROE
$81,263
05
Operating expenses
Tax expense
b. Compute return on assets (ROA).
Note: 1. Select the appropriate numerator and denominator used to compute ROA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROA.
Numerator
Denominator
ROA
-$2.499.507
+
Interest expense, net
Net Income
0
R
. Compute return on net operating assets (RNOA).
Note: 1. Select the appropriate numerator and denominator used to compute RNOA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute RNOA.
Denominator
Numerator
RNOA
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