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

 Compute and Interpret Ratios Selected balance sheet and income statement information
from Illinois Tool Works follows. 2019 2018 2017 $ millions Net operating
profit after tax (NOPAT) Net income Total assets Equity Net operating profit

Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows. 2019 2018 2017 $ millions Net operating profit after tax (NOPAT) Net income Total assets Equity Net operating profit after tax (NOA) Treasury stock $2,610 $2,711 2,521 2,563 15,068 14,870 $16,780 3,026 3,254 3,254 8,869 9,462 10,089 18,982 17,545 15,562 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%). 2019 2018 Metric RNOA % % ROA % % b. Adjust equity and total assets for the amount of treasury stock. $ millions 2019 2018 Assets, restated $ $ $ Equity, restated $ $ $ 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 % % ROA % % ROE % % C. Which profitability measures (from part a or part b) better reflect the company's profit levels during the two years? Of the three measures, which one is least c. Which profitability measures (from part a or part b) better reflect the company's profit levels during the two years? Of the three measures, which one is least influenced by the company's stock repurchase activity

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