ompute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 2017 2016 Net operating profit after tax (NOPAT) $10,978 $3,222 $2,556 Net income 10,073 3,033 2,371 Operating profit 12,421 4,106 4,186 Interest expense 1,417 848 484 Cash from operating activities 30,723 18,365 17,203 Current assets 75,101 60,197 45,781 Current liabilities 68,391 57,883 43,816 Cash and cash equivalents 31,750 20,522 19,334 Marketable securities 9,500 10,464 6,647 Total debt 23,495 24,743 7,694 Assets 162,648 131,310 83,402 Liabilities 119,099 103,601 64,117 Equity 43,549 27,709 19,285 Net operating assets (NOA) 25,794 21,466 998 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 Answer ROE Answer Answer
ompute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 2017 2016 Net operating profit after tax (NOPAT) $10,978 $3,222 $2,556 Net income 10,073 3,033 2,371 Operating profit 12,421 4,106 4,186 Interest expense 1,417 848 484 Cash from operating activities 30,723 18,365 17,203 Current assets 75,101 60,197 45,781 Current liabilities 68,391 57,883 43,816 Cash and cash equivalents 31,750 20,522 19,334 Marketable securities 9,500 10,464 6,647 Total debt 23,495 24,743 7,694 Assets 162,648 131,310 83,402 Liabilities 119,099 103,601 64,117 Equity 43,549 27,709 19,285 Net operating assets (NOA) 25,794 21,466 998 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 Answer ROE Answer Answer
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 77E
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Question
Compute and Interpret Coverage, Liquidity and Solvency Ratios
Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows.
| $ millions | 2018 | 2017 | 2016 |
|---|---|---|---|
| $10,978 | $3,222 | $2,556 | |
| Net income | 10,073 | 3,033 | 2,371 |
| Operating profit | 12,421 | 4,106 | 4,186 |
| Interest expense | 1,417 | 848 | 484 |
| Cash from operating activities | 30,723 | 18,365 | 17,203 |
| Current assets | 75,101 | 60,197 | 45,781 |
| Current liabilities | 68,391 | 57,883 | 43,816 |
| Cash and cash equivalents | 31,750 | 20,522 | 19,334 |
| Marketable securities | 9,500 | 10,464 | 6,647 |
| Total debt | 23,495 | 24,743 | 7,694 |
| Assets | 162,648 | 131,310 | 83,402 |
| Liabilities | 119,099 | 103,601 | 64,117 |
| Equity | 43,549 | 27,709 | 19,285 |
| Net operating assets (NOA) | 25,794 | 21,466 | 998 |
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
|
Answer
|
| ROE | Answer
|
Answer
|
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