Selected balance sheet and income statement information from Abbott Laboratories for 2018 follows ($ millions). Net income
Question:
Selected balance sheet and income statement information from Abbott Laboratories for 2018 follows ($ millions).
Net income | $2,368 |
Net income attributable to Company shareholders | 2,368 |
Net operating profit after tax (NOPAT) | 2,940 |
Net nonoperating expense (NNE) | 572 |
Average net operating assets (NOA) | 48,222 |
Average net nonoperating obligations (NNO) | 17,312 |
Average total equity | 30,910 |
Average equity attributable to Company shareholders | 30,711 |
Compute the following measures a through h.
a. Return on equity = (Net income attributable to Company shareholders/Average equity attributable to Company shareholders)
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer
%
b. RNOA = NOPAT/Average NOA
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer%
c. Nonoperating return = ROE − RNOA
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer%
d. NNEP = NNE/Average NNO
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer%
e. Spread = RNOA − NNEP
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer%
f. FLEV = Average NNO/Average total equity
Note: Round amount to two decimal places (for example, enter 6.78 for 6.77555).
Answer
g. NCI ratio = (Net income attributable to Company shareholders/Net income)/(Average equity attributable to Company shareholders/Average total equity)
Note: Round amount to two decimal places (for example, enter 6.78 for 6.77555).
Answer
h. ROE = (RNOA + (Spread × FLEV)) × NCI ratio
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer%