Refer to the financial statements of The Home Depot in Appendix A at the end of this book, or download the annual report from the Cases section of the text's Web site at www.mhhe.com/phillips4e.
Required:
1. Calculate the debt-to-assets ratio at January 30, 2011, and January 31, 2010. Based on these calculations, has The Home Depot's financing become more or less risky over these two years?
a. 0.529 and 0.526 (less risky)
b. 0.526 and 0.529 (more risky)
c. 0.526 and 0.529 (less risky)
d. 0.529 and 0.526 (more risky)
2. Calculate the asset turnover ratio for the January 2011 and 2010 year-ends. The Home
Depot's total assets at the end of fiscal 2009 were $41,164 million.
a. 1.68 and 1.61
b. 5.00 and 4.80
c. 1.69 and 1.62
d. 1.69 and 4.80
3. Calculate the net profit margin ratio for 2010-2011 and 2009-2010.
a. 4.9% and 4.0%
b. 4.0% and 3.2%
c. 4.3% and 4.9%
d. 1.6% and 2.0%