Return on Investment, Financial Leverage, and DuPont Analysis The following tables provide information from the...
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Return on Investment, Financial Leverage, and DuPont Analysis The following tables provide information from the recent annual reports of HD Rinker, AG.
Balance Sheets ( millions)
2022
2021
2020
2019
Total assets
24,826
26,224
29,155
28,343
Total liabilities
23,880
19,895
19,955
20,390
Total shareholders equity
946
6,329
9,200
7,953
Income Statements ( millions) 52 Weeks Ended
2022
2021
2020
Sales revenue
41,455
38,450
34,530
Earnings before interest and income taxes
6,919
6,854
4,170
Interest expense
985
830
950
Earnings before income taxes
5,934
6,024
3,220
Income tax expense
1,510
1,785
810
Net earnings
4,424
4,239
2,410
Part a
Part b
Part c
b. Calculate HD Rinkers return on assets (ROA) and return on nancial leverage (ROFL) for each year. Is nancial leverage working to the advantage of HD Rinkers shareholders? Use a statutory tax rate of 25% Note: Round your answers to the nearest million euros.
Numerator ( millions)
Denominator ( millions)
=
Result
2022 ROA
Answer
Answer
=
2021 ROA
Answer
Answer
=
2020 ROA
Answer
Answer
=
Note: Enter the percent rounded to two digits after the decimal.
?
-
?
=
ROFL
2022 ROFL
Answer
-
Answer
=
2021 ROFL
Answer
-
Answer
=
2020 ROFL
Answer
-
Answer
=
Return on Investment, Financial Leverage, and DuPont Analysis The following tables provide information from the recent annual reports of HD Rinker, AG.
Balance Sheets ( millions)
2022
2021
2020
2019
Total assets
24,826
26,224
29,155
28,343
Total liabilities
23,880
19,895
19,955
20,390
Total shareholders equity
946
6,329
9,200
7,953
Income Statements ( millions) 52 Weeks Ended
2022
2021
2020
Sales revenue
41,455
38,450
34,530
Earnings before interest and income taxes
6,919
6,854
4,170
Interest expense
985
830
950
Earnings before income taxes
5,934
6,024
3,220
Income tax expense
1,510
1,785
810
Net earnings
4,424
4,239
2,410
Part a
Part b
Part c
b. Calculate HD Rinkers return on assets (ROA) and return on nancial leverage (ROFL) for each year. Is nancial leverage working to the advantage of HD Rinkers shareholders? Use a statutory tax rate of 25% Note: Round your answers to the nearest million euros.
Numerator ( millions)
Denominator ( millions)
=
Result
2022 ROA
Answer
Answer
=
2021 ROA
Answer
Answer
=
2020 ROA
Answer
Answer
=
Note: Enter the percent rounded to two digits after the decimal.
?
-
?
=
ROFL
2022 ROFL
Answer
-
Answer
=
2021 ROFL
Answer
-
Answer
=
2020 ROFL
Answer
-
Answer
=
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