Compute DuPont Analysis Ratios Selected balance sheet and income statement information for Humana Inc., a health and well-being company, follows. 2018 2017 2018 Company ($ millions) Ticker Revenue income Assets Assets Humana Inc HUM $66,832 $11,603 $35,333 $37,098 $ $ 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 → 0 $ 2018 Net 2018 2017 Stockholders' Stockholders' ◆ 0 $ + ♦ 0 $ 0 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 0 Equity $20,081 ♦ ROE 0 c. Financial leverage (FL) Note: 1. Select the appropriate numerator and denominator used to compute FL from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute FL. Numerator Denominator % Equity $19,762 FL %
Compute DuPont Analysis Ratios Selected balance sheet and income statement information for Humana Inc., a health and well-being company, follows. 2018 2017 2018 Company ($ millions) Ticker Revenue income Assets Assets Humana Inc HUM $66,832 $11,603 $35,333 $37,098 $ $ 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 → 0 $ 2018 Net 2018 2017 Stockholders' Stockholders' ◆ 0 $ + ♦ 0 $ 0 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 0 Equity $20,081 ♦ ROE 0 c. Financial leverage (FL) Note: 1. Select the appropriate numerator and denominator used to compute FL from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute FL. Numerator Denominator % Equity $19,762 FL %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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