The Home Depot reported the following data (in millions) in its recent financial statements: Year 2 Year
Question:
The Home Depot reported the following data (in millions) in its recent financial statements:
Year 2 Year 1
Total sales $83,176 $78,812
Total assets:
Beginning of year 40,518 41,084
End of year 39,946 40,518
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 trend in the ability of Home Depot to effectively use its assets to generate sales?
Step by Step Answer:
Financial And Managerial Accounting
ISBN: 9781337119207
14th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac