Question: 2017 Computing, Analyzing, and Interpreting Return on Equity and Return on Assets Following are summary financial statement data for Nordstrom Inc for fiscal years ended
2017 Computing, Analyzing, and Interpreting Return on Equity and Return on Assets Following are summary financial statement data for Nordstrom Inc for fiscal years ended 2017 through 2019. S thousands 2019 2018 $19,032 518,574 517,708 Net income 620 389 11,040 11,361 11,001 Equity 1.048 1,172 1,044 Sales 481 Total assets a. Compute the return on assets (ROA) for fiscal years ended 2019 and 2018. Round answers to one decimal place (ex: 0.2345 = 23.5%). 2019 0% 2018 0 % b.Compute the profit margin (PM) for fiscal years ended 2019 and 2018. Round answers t one decimal place (ex: 0.2345 = 23.5%). 2018 0% 2019 0% c. Compute the asset turnover (AT) for fiscal years ended 2019 and 2018. Round answers to two decimal places. 2019 2018 d. Which component of ROA (profit margin or asset turnover or both) drives the change in ROA in Niscal year ended 2019) e. Compute the return on equity (ROE) for fiscal years ended 2019 and 2018, Round answers to one decimal place (ex: 0.2345 = 23.5%), 2019 2018 OM 0
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