Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

8.Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot follows. $ millions Jan. 31, 2016 Feb. 01, 2015

8.Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot follows.

$ millions Jan. 31, 2016 Feb. 01, 2015
Operating assets $40,783 $38,673
Nonoperating assets 2,291 1,798
Total assets 43,074 40,471
Operating liabilities 15,068 13,577
Nonoperating liabilities 21,270 17,152
Total liabilities 36,338 30,729
Total stockholders' equity 6,736 9,742
Sales 89,464
Net operating profit before tax (NOPBT) 12,224
Nonoperting expense before tax 828
Tax expense 4,523
Net income 6,873

Round answers to two decimal places (ex: 0.12345 = 12.35%)

a. Compute return on equity.____%?

b. Compute return on net operating assets (RNOA).____%?

c. Use ROE and RNOA to determine the nonoperating return for the year.____%?

d. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA. NOPM ____%? NOAT ____%? RNOA ____%?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Production And Operations Analysis

Authors: Steven Nahmias

6th Edition

0073377856, 9780073377858

More Books

Students also viewed these Finance questions