Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. $ millions 2019 2018 2017 Net operating profit after tax (NOPAT) $2,480 $2,575   Net income 2,395 2,435   Total assets 13,561 13,383 $15,102 Equity 2,723 2,929 2,929 Net operating profit after tax (NOA) 7,982 8,516 9,080 Treasury stock 18,033 16,668 14,784 Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). b. Adjust equity and total assets for the amount of treasury stock. Using these restated numbers, recompute RNOA, ROA and ROE for both years. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%).

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Chapter1: Financial Statements And Business Decisions
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Compute and Interpret Ratios

Selected balance sheet and income statement information from Illinois Tool Works follows.

$ millions 2019 2018 2017
Net operating profit after tax (NOPAT) $2,480 $2,575  
Net income 2,395 2,435  
Total assets 13,561 13,383 $15,102
Equity 2,723 2,929 2,929
Net operating profit after tax (NOA) 7,982 8,516 9,080
Treasury stock 18,033 16,668 14,784

Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company.

Note: Round answers to one decimal place (ex: 0.2345 = 23.5%).

b. Adjust equity and total assets for the amount of treasury stock.

Using these restated numbers, recompute RNOA, ROA and ROE for both years.
Note: Round answers to one decimal place (ex: 0.2345 = 23.5%).

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