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

 Compute and Interpret Ratios Selected balance sheet and income statement information

Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. 2018 $ millions 2019 2017 Net operating profit after tax (NOPAT) $2,688 $2,792 Net income 2,597 2,640 Total assets 14,164 13,978 $15,773 Equity 2,844 3,059 3,059 Net operating profit after tax (NOA) 8,337 8,894 9,484 Treasury stock 19,551 18,071 16,029 a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported by the company. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Metric 2019 2018 RNOA 32.2% X 31.4% X ROA 18.3 % x 18.9 % X ROE 91.3 % x 86.3% b. Adjust equity and total assets for the amount of treasury stock. $ millions 2019 2018 2017 Assets, restated $ Ox $ 0X $ 0 X Equity, restated 0X $ 0 x $ 0 X

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