Compute and Interpret RatiosSelected balance sheet and income statement information from Illinois Tool Works follows.$ millions2019 2018 2017Net operating profit after tax (NOPAT) $2,688 $2.792Net income2.597 2.640Total assetsEquity14,164 13,978 $15,7732,844 3.059 3.059Net operating profit after tax (NOA)Treasury stock8,337 8,894 9,48419.551 18,071 16,029a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company.Note: Round answers to one decimal place (ex: 0.2345 = 23.5%).MetricRNOAROAROE20192018%%%b. Adjust equity and total assets for the amount of treasury stock.$ millionsAssets, restated $Equity, restated20192018S2017Using these restated numbers, recompute RNOA, ROA and ROE for both years.Note: Round answers to one decimal place (ex: 0.2345 = 23.5%).MetricRNOAROAROE20192018c. Which profitability measures (from part a or part b) better reflect the company's profit levels during the two years?Of the three measures, which one is least influenced by the company's stock repurchase activity?

b.Adjust equity and total assets for the amount of treasury stock.Equity, restated = Equity reported…

Answered: Compute and Interpret Ratios Selected…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Projecting NOPAT and NOA Using Parsimonious Forecasting Method Following are Logitech's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) for its fiscal year ended March 31, 2019 ($ thousands). Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places. Financial information Net sales Net operating profit after tax (NOPAT) Net operating assets (NOA) $2,091,242 158,522 428,867 Use the parsimonious method to forecast Logitech's sales, NOPAT, and NOA for fiscal years ended March 31, 2020 through 2023 using the following assumptions. Note: Complete the entire question in Excel (template provided above). Using Excel, format each answer to two decimal places. Use Increase Decimal or Decrease Decimal to adjust decimal places. Do not round answers. Then enter the answers into the provided spaces below with two decimal places_. Note: When completing the question…
Compute DuPont Analysis Ratios Selected balance sheet and income statement information for Humana Inc., a health and well‑being company, follows. 2018 2017 2018 2018 Net 2018 2017 Stockholders’ Stockholders’ Company ($ millions) Ticker Revenue income Assets Assets Equity Equity Humana Inc HUM $66,610 $11,381 $35,111 $36,876 $19,859 $19,540 Compute the following 2018 ratios for Humana. a. 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 Answer Answer Answer Answer b. Profit margin (PM) Note: 1. Select the appropriate numerator and denominator used to compute PM from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute PM. Numerator Denominator PM Answer Answer Answer Answer c. Financial leverage…
Selected balance sheet and income statement information from Illinois Tool Works follows. $ millions Net operating profit after tax (NOPAT) $2,897 $3,009 Net income 2,798 2,845 Total assets 15,671 15,465 $17,451 Equity 3,147 3,384 3,384 10,493 Net operating profit after tax (NOA) 9,224 9,840 Treasury stock 21,070 19,475 17,274 a. 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%). Metric RNOA ROA ROE 2019 30.4 % 17.9 % ✓ 88.91 % * $ millions Assets, restated $ Equity, restated b. Adjust equity and total assets for the amount of treasury stock. 2019 2018 34,940 $ 36,741 $ 24,217 ✔ $ 22,859 $ 2019 2018 30.4 % 8.08 % * 2019 2018 2017 11.89% 29.6 % 18.28 % * 84.1 %✔ Using these restated numbers, recompute RNOA, ROA and ROE for both years. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Metric RNOA ROA ROE 2018 2017 29.6 % 8.64 % * 13.08% ✔ 34,725…
This year Last year 1050 Assets Cash 1530 Marketable securities Accounts receivable Inventories Total current assets 1810 1220 2050 1770 2900 2790 8290 6830 Gross fixed assets 29480 28090 Less: Accumulated depreciation 14680 13140 Net fixed assets 14800 14950 Total assets Liabilities and Stockholders' Equity 23090 21780 Accounts payable Notes payable Accruals 1560 1540 2760 2160 190 350 Total current liabilities 4510 4050 Long-term debt Common stock Retained earnings Total stockholders' equity 5220 4970 9950 9950 3410 2810 13360 12760 Total liabilities and stockholders' equity 23090 21780
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%).
Base on the financial ratios of company A, what is your recommendations and conclusion for company A.
Abhaliya
HIC GROUP OF Companies COMPARATIVE INCOME STATEMENT For years ended 3rd December 2019 2020 Revenue and gains Sales revenue 495,500 496,738.75 Interest revenue 278,500 279,196.25 Investment Income 71,700 71,879.25 Other revenue 101,500 101,753.75 Total revenue and gains 947,200 949,968 Expenses and losses Cost of good sold 450,000 447,750 Selling&administrative 185,000 184,075 Computer (operating) 42,500 42,288 Depreciation 50,000…
swer questions Income Statement Items 2019 2016 (000'Rands) (000'Rands) Sales Depreciation and ammortisation Interest expense Operating expense Gross Profit Margin 000 480 40% %0% Tax rate 30% 30% 2019 2016 Balance Sheet (000'Rands) (000'Rands) Accounts Payable 1,500 Accounts Receivable Accumulated /Retained Profits to 00 to 00 Cash to 00 0o 00 to 00 to 00 0o 00 Inventory Long term loans Ordinary Shares Property, Plant and Equipment Short term loans to 00 0o 00 00 00
What is the Analysis for year 2018 - 2020?

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