Question: Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. $ millions 2019 2018 2017 Net operating profit

Compute and Interpret Ratios Selected balance sheet and income statement information from

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 Equity 13,561 13,383 $15,102 2,723 2,929 2,929 Net operating profit after tax (NOA) Treasury stock 7,982 8,516 9,080 18,033 16,668 14,784 a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the comp. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Metric 2019 2018 RNOA 0% x ROA 0% * 0% x 0% * ROE % * 0% x b. Adjust equity and total assets for the amount of treasury stock. $ millions 2019 2018 2017 Assets, restated $ 0 x $ Equity, restated 0 x $ 0 x $ 0 x $ 0 x 0 x 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 2019 2018 RNOA 0% x 0% * ROA 0% * 0% * ROE 0% * 0% *

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