Question: Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 2017 2016 Net operating profit after tax (NOPAT)
Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 2017 2016 Net operating profit after tax (NOPAT) $12,186 $3,576 $2,837 Net income 11,181 3,367 2,632 Operating profit 13,787 4,558 4,646 Interest expense 1,474 882 503 Cash from operating activities 34,103 20,385 19,095 Current assets 83,362 66,819 50,817 Current liabilities 71,127 60,198 45,569 Cash and cash equivalents 35,243 22,779 21,461 Marketable securities 10,545 11,615 7,378 Total debt 24,435 25,733 8,002 Assets 180,539 145,754 92,576 Liabilities 123,863 107,745 66,682 Equity 45,291 28,817 20,056 Net operating assets (NOA) 26,826 22,325 1,038
a. Compute profitability measures RNOA and ROE for 2018 and 2017. In which year are the measures stronger? Round answers to one decimal place (ex: 0.2345 = 23.5%). 2018 2017 RNOA Answer 0 Answer 0 ROE Answer 0 Answer 0
b. Compute coverage metrics Times interest earned and Cash from operating activities to total debt for 2018 and 2017. Round answers to two decimal places. 2018 2017 Times interest earned Answer 0 Answer 0 Cash from operating activities to total debt Answer 0 Answer 0
c. Determine liquidity for the company for 2018 and 2017 by computing the current ratio and quick ratio. Round answers to two decimal places. 2018 2017 Current ratio Answer 0 Answer 0 Quick ratio Answer 0 Answer 0
d. Compute the Total liabilitiestoequity ratio and the Total debt to equity ratio for 2018 and 2017. Round answers to two decimal places. 2018 2017 Total liabilities-to-equity Answer 0 Answer 0 Total debt to equity Answer 0 Answer 0
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