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 %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Compute DuPont Analysis Ratios
Selected balance sheet and income statement information for Humana Inc., a health and well-being company, follows.
2018
2017
Company
($ millions) Ticker Revenue income Assets Assets
Humana Inc HUM $66,832 $11,603 $35,333 $37,098
2018
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
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
0 $
◆
Equity
$20,081
0
ROE
0
PM
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
$19,762
FL
%
Transcribed Image Text:Compute DuPont Analysis Ratios Selected balance sheet and income statement information for Humana Inc., a health and well-being company, follows. 2018 2017 Company ($ millions) Ticker Revenue income Assets Assets Humana Inc HUM $66,832 $11,603 $35,333 $37,098 2018 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 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 0 $ ◆ Equity $20,081 0 ROE 0 PM 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 %
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education