Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions...
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Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 2017 2016 Net operating profit after tax (NOPAT) $11,307 $3,319 $2.633 Net income 10,375 3,124 2.442 12,794 4,229 4,312 1,332 797 455 31,645 18,916 17,719 77.354 62.003 47.154 Operating profit Interest expense Cash from operating activities Current assets Current liabilities Cash and cash equivalents Marketable securities Total debt Assets Liabilities Equity Net operating assets (NOA) 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%). RNOA ROE 2018 64,288 54,410 41.187 32.703 21,138 19.914 9.785 10.778 6.846 22,085 23,258 7,232 167,527 135,249 85,904 111,953 97,385 60,270 40,936 26.046 18,128 24,246 20,178 938 50.9% ✔ 25.3% * 2017 21.4% X 12% 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. Times interest earned Cash from operating activities to total debt 2018 9.91 x 2017 6.06 Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 2017 2016 Net operating profit after tax (NOPAT) $11,307 $3,319 $2.633 Net income 10,375 3,124 2.442 12,794 4,229 4,312 1,332 797 455 31,645 18,916 17,719 77.354 62.003 47.154 Operating profit Interest expense Cash from operating activities Current assets Current liabilities Cash and cash equivalents Marketable securities Total debt Assets Liabilities Equity Net operating assets (NOA) 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%). RNOA ROE 2018 64,288 54,410 41.187 32.703 21,138 19.914 9.785 10.778 6.846 22,085 23,258 7,232 167,527 135,249 85,904 111,953 97,385 60,270 40,936 26.046 18,128 24,246 20,178 938 50.9% ✔ 25.3% * 2017 21.4% X 12% 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. Times interest earned Cash from operating activities to total debt 2018 9.91 x 2017 6.06
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Answer rating: 100% (QA)
a To compute Return on Net Operating Assets RNOA and Return on Equity ROE RNOA net operating profit ... View the full answer
Related Book For
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
Posted Date:
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