15 - Chapter 5 SHEET SHEET SHEET

Analyze Home Depot The Home Depot (HD) reported the following dato (in milions) in its recent financial statements: a. Determine the asset turnover ratio for Home Depot for Year 2 and Year 1. Round to two declmal places. b. What does an asset turnover ratio indicate? 1. Effectiveness in the use of assets to generate revenue. 2. Effective use of revenue to creote assets. 3. Effective use of assets to reduce cost. 4. Effective use of essets to increase assets