The Home Depot, Inc., is the world's largest home improvement retailer and one of the largest retailers in the United States based on net sales volume. The Home Depot operates over 2,000 Home Depot stores that sell a wide assortment of building mate- rials and home improvement and lawn and garden products. The Home Depot also operates over 30 EXPO Design Center stores that offer interior design products, such as kitchen and bathroom cabinetry, tiles, flooring, and lighting fixtures, and installation services. The Home Depot reported the following balance sheet data (in millions):

a. Determine the total liabilities as of January 28, 2007, and January 29, 2006.

b. Determine the ratio of liabilities to stockholders' equity for 2007 and 2006. Round to two decimal places.

c. What conclusions regarding the margin of protection to the creditors can you draw from (b)?

Transcribed Image Text:

Jan. 28, 2007 Jan. 29, 2006 Total assets $52,263 $44,405 Total stockholders' equity 25,030 26,909