P1.49 Computing, Analyzing, and Interpreting Return on Equity and Return on Assets Following are summary financial statement data for Logitech International for 20 16 through 201 8.

$thousands 2018 2017 2016 Sales ............... $2,566,863 $2,221 ,427 $2,018,100 Net income . ...... . .. 208,542 205,876 119,317 Total assets . .. . .. . .. 1,743, 157 1,498,677 1,324,147 Equity .. .. . ...... . .. 1,050,557 856,111 759,948 Required

a. Compute the return on assets (ROA) for2018 and 201 7.

b. Compute the profit margin (PM) for 20 l 8 and 2017.

c. Compute the asset turnover (AT) for 20 l 8 and 20 l 7.

d. Which component of ROA (profit margin or asset turnover or both) drives the change in ROA in 2018?

e. Compute the return on equity (ROE) for 2018 and 2017.
f Logitech repurchased common shares in 2018 at a cost of $30 million. Did this repurchase increase or decrease the company's ROE?