Disaggregate Traditional DuPont ROEGraphical representations of the KLA-Tencor 2018 income statement and average balance sheet numbers (2017-2018) follow ($ thousands).KLA-TencorAverage Balance Sheet 2017-2018$1,473,464FL$2,583,930-ATKLA-TencorIncome Statement 2018$802,265-$2,627.235.5O-O$653,666-- $2.948.529$1,518,371■ Operating assets Nonoperating assets Operating liabilitiesNonoperating liabilities ■ Equity$81,263a. Compute return on equity (ROE).Round answer to two decimal places (ex: 0.12345 = 12.35%)ROE%Operating expenses Interest expense, netTax expenseNet incomeb. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage.Round answers to two decimal places (ex: 0.12345= 12.35%)ROA%-$2,499,507c. Calculate the profitability and productivity components of ROA.Round profit margin (PM) to two decimal places (ex: 0.12345 = 12.35%)Round asset turnover (AT) to three decimal places.PM%d. Confirm the ROE from part a. above with the full DuPont disaggregation: ROE = PM X ATX FL.Round answer to two decimal places (ex: 0.12345= 12.35%)%

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Disaggregate Traditional DuPont ROE Graphical representations of the KLA-Tencor 2018 income statement and average balance sheet numbers (2017-2018) follow ($ thousands). KLA-Tencor Average Balance Sheet 2017-2018 $1,473,464 O $2.583,930 $2,627,235.5 -$2,948,529 $1,518,371 ■ Operating assets Nonoperating assets Operating liabilities Nonoperating liabilities ■ Equity KLA-Tencor Income Statement 2018. $802,265 $653,666- $81,263 Operating expenses Tax expense -$2,499,507 Interest expense, net Net income

Disaggregate Traditional DuPont ROE Graphical representations of the KLA-Tencor 2018 income statement and average balance sheet numbers (2017-2018) follow ($ thousands). KLA-Tencor Average Balance Sheet 2017-2018 $1,473,464 O $2.583,930 $2,627,235.5 -$2,948,529 $1,518,371 ■ Operating assets Nonoperating assets Operating liabilities Nonoperating liabilities ■ Equity KLA-Tencor Income Statement 2018. $802,265 $653,666- $81,263 Operating expenses Tax expense -$2,499,507 Interest expense, net Net income

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 74E

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