1. What is the return on assets for Home Depot for (a) FYE 2/2/2020 and (b) FYE 1/31/2021? Assume FYE 2/3/2019 total assets were $44,003. Format your answer as in this example: $10,000 / [($100,000 + $200,000)/2] = 6.67%. Round your answer to two decimal places (e.g., 7.50%). What can you conclude about Home Depot from these return on assets computations? (Assume competitors average a 15.16% return.) 2. What is the debt ratio for Home Depot for (a) FYE 2/2/2020 and (b) FYE 1/31/2021? Format your answer as in this example: $100,000/$200,000 = 0.50. Round your answer to two decimal places (e.g., 1.51). In which year did the company have a higher degree of financial leverage? What does this imply? 3. Compute (a) profit margin and (b) gross margin (gross profit) ratios for Home Depot for FYE 2/2/2020 and FYE 1/31/2021. Round your answer to two decimal places (e.g., 2.57%). In which year is the company more successful on the basis of profit margin? Explain. Did the gross margin ratio improve or decline for the company? How do they compare to the industry average of 34.44%? 4. Compute (a) current ratio and (b) acid-test ratio (quick ratio) for Home Depot for FYE 2/2/2020 and FYE 1/31/2021. Round your answer to two decimal places (e.g., 1.64). Which year does the company have the better ability to pay short-term obligations? How does Home Depots current ratio compare to their industry average ratio of 1.38? How does the company's acid-test ratio compare to the industry average of 0.42? 5. Compute (a) inventory turnover and (b) days' sales in inventory for Home Depot for FYE 2/2/2020 and FYE 1/31/2021. Round your answer to two decimal places (e.g., 1.64). Assume inventories for Home Depot for FYE 2/3/2019 are $13,925. Comment on and interpret your findings regarding Home Depot's inventory management efforts. Assume an industry average for inventory turnover of 4.78. 1. What is the return on assets for Home Depot for (a) FYE 2/2/2020 and (b) FYE 1/31/2021? Assume FYE 2/3/2019 total assets were $44,003. Format your answer as in this example: $10,000 / [($100,000 + $200,000)/2] = 6.67%. Round your answer to two decimal places (e.g., 7.50%). What can you conclude about Home Depot from these return on assets computations? (Assume competitors average a 15.16% return.) 2. What is the debt ratio for Home Depot for (a) FYE 2/2/2020 and (b) FYE 1/31/2021? Format your answer as in this example: $100,000/$200,000 = 0.50. Round your answer to two decimal places (e.g., 1.51). In which year did the company have a higher degree of financial leverage? What does this imply? 3. Compute (a) profit margin and (b) gross margin (gross profit) ratios for Home Depot for FYE 2/2/2020 and FYE 1/31/2021. Round your answer to two decimal places (e.g., 2.57%). In which year is the company more successful on the basis of profit margin? Explain. Did the gross margin ratio improve or decline for the company? How do they compare to the industry average of 34.44%? 4. Compute (a) current ratio and (b) acid-test ratio (quick ratio) for Home Depot for FYE 2/2/2020 and FYE 1/31/2021. Round your answer to two decimal places (e.g., 1.64). Which year does the company have the better ability to pay short-term obligations? How does Home Depots current ratio compare to their industry average ratio of 1.38? How does the company's acid-test ratio compare to the industry average of 0.42? 5. Compute (a) inventory turnover and (b) days' sales in inventory for Home Depot for FYE 2/2/2020 and FYE 1/31/2021. Round your answer to two decimal places (e.g., 1.64). Assume inventories for Home Depot for FYE 2/3/2019 are $13,925. Comment on and interpret your findings regarding Home Depot's inventory management efforts. Assume an industry average for inventory turnover of 4.78
