The Home Depot (HD) reported the following data (in millions) in its recent financial statements:

a. Determine the asset turnover ratio for Home Depot for Year 2 and Year 1. Round to two decimal places.
b. What conclusions can be drawn from these ratios concerning the change in the ability of Home Depot to effectively use its assets to generate sales?

Transcribed Image Text:

Year 2 $95,595 $88,519 Year 1 Total sales Total assets: Beginning of year End of year 41,973 42,966 39,946 41,973