Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois Tool Works follows....

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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) $2,741 $2,847 Net income 2,647 2,691 Total assets Equity 16,876 16,654 $18,794 3,389 3,644 3,644 Net operating profit after tax (NOA) Treasury stock 19,931 18,422 9,933 10,597 11,300 16,340 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 RNOA 2019 2018 0% 0% ROA 0% 0% ROE 0% 0% b. Adjust equity and total assets for the amount of treasury stock. $ millions 2019 2018 2017 Assets, restated $ 0 $ 0 $ 0 Equity, restated 0 $ 0 $ 0 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% 0% ROA 0% 0% ROE 0% 0% 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) $2,741 $2,847 Net income 2,647 2,691 Total assets Equity 16,876 16,654 $18,794 3,389 3,644 3,644 Net operating profit after tax (NOA) Treasury stock 19,931 18,422 9,933 10,597 11,300 16,340 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 RNOA 2019 2018 0% 0% ROA 0% 0% ROE 0% 0% b. Adjust equity and total assets for the amount of treasury stock. $ millions 2019 2018 2017 Assets, restated $ 0 $ 0 $ 0 Equity, restated 0 $ 0 $ 0 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% 0% ROA 0% 0% ROE 0% 0%

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