a. Compute the ROI and EVA for the two most recent years reported. Use Net Earnings as a measure of earnings or returns, and Net Property and Equipment as the invested capital base. Assume the weighted-average cost of capital is 10 percent.

b. Are they improving or declining?

THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS February 3, 2019 January 28, 2018 $ 1,778 1,936 13.925 890 18,529 22,375 2,252 847 44,003 3,595 1,952 12,748 638 18,933 22,075 2,275 1,246 44.529 S $ millions, except per share data Assets Current assets: Cash and cash equivalents Receivables, net Merchandise inventories Other current assets Total current assets Net property and equipment Goodwill Duca Other assets Total assets Liabilities and Stockholders' Equity Current liabilities: Short-term debt Accounts payable Accrued salaries and related expenses Sales taxes Deferred revenue Income taxes payable Current installments of long-term debt Other d expenses Total current liabilities Long-term debt, excluding current installments Defer income taxes Other long- g-term liabilities Total liabilities Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,782 at February 3, 2019 and 1,780 shares at January 28, 2018; outstanding: 1,105 shares at February 3, 2019 and 1,158 shares at January 28, 2018 Paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost, 677 shares at February 3, 2019 and 622 shares at January 28, 2018 Total stockholders' (deficit) equity Total liabilities and stockholders' equity See accompanying notes to consolidated financial statements. s payable 1,559 7,244 1,640 520 1,805 54 1,202 2,170 2:17 accruede 16,194 24,267 1,339 7.755 1,506 656 1,782 11 1,056 2010 2,611 2104 16,716 23/10 26,807 491 1,867 86- 99 45,881 89 10,578 46,423 (772) (58,196) (1,878) 44,003 440 2,174 43,075 o 10,192 39.935 (566) (48,196) 1.454 44.529 Page A-3 CONSOLIDATED STATEMENTS OF EARNINGS Fiscal 2018 $ 108,203 71,043 37,160 Fiscal 2017 $ 100,904 66,548 34.356 Fiscal 2016 $ 94.595 62,282 32,313 17,864 1,811 17,132 1,754 in millions, except per share data Net sales Cost of sales Gross profit Operating expenses: Selling, general and administrative Depreciation and amortization Impairment loss Total operating expenses Operating income Interest and other (income) expense: Interest and investment income Interest expense Other Interest and other, net Earnings before provision for income taxes Provision for income taxes Net earnings 19,513 1,870 247 21,630 15,530 19,675 14,681 18,886 13,427 (74) (36) 972 1,057 (93) 1,051 16 974 14,556 3,435 11,121 983 13,698 5.068 936 12,491 4,534 7,957 8,630 Basic weighted average common shares Basic earnings per share 1,137 9.78 1,178 7-33 1,229 6.47 $ $ $ 1,143 9.73 1,184 7.29 1,234 6.45 $ $ $ Diluted weighted average common shares Diluted earnings per share Fiscal 2018 includes 53 weeks. Fiscal 2017 and fiscal 2016 include 52 weeks. See accompanying notes to consolidated financial statements. Page A-4 THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS February 3, 2019 January 28, 2018 $ 1,778 1,936 13.925 890 18,529 22,375 2,252 847 44,003 3,595 1,952 12,748 638 18,933 22,075 2,275 1,246 44.529 S $ millions, except per share data Assets Current assets: Cash and cash equivalents Receivables, net Merchandise inventories Other current assets Total current assets Net property and equipment Goodwill Duca Other assets Total assets Liabilities and Stockholders' Equity Current liabilities: Short-term debt Accounts payable Accrued salaries and related expenses Sales taxes Deferred revenue Income taxes payable Current installments of long-term debt Other d expenses Total current liabilities Long-term debt, excluding current installments Defer income taxes Other long- g-term liabilities Total liabilities Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,782 at February 3, 2019 and 1,780 shares at January 28, 2018; outstanding: 1,105 shares at February 3, 2019 and 1,158 shares at January 28, 2018 Paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost, 677 shares at February 3, 2019 and 622 shares at January 28, 2018 Total stockholders' (deficit) equity Total liabilities and stockholders' equity See accompanying notes to consolidated financial statements. s payable 1,559 7,244 1,640 520 1,805 54 1,202 2,170 2:17 accruede 16,194 24,267 1,339 7.755 1,506 656 1,782 11 1,056 2010 2,611 2104 16,716 23/10 26,807 491 1,867 86- 99 45,881 89 10,578 46,423 (772) (58,196) (1,878) 44,003 440 2,174 43,075 o 10,192 39.935 (566) (48,196) 1.454 44.529 Page A-3 CONSOLIDATED STATEMENTS OF EARNINGS Fiscal 2018 $ 108,203 71,043 37,160 Fiscal 2017 $ 100,904 66,548 34.356 Fiscal 2016 $ 94.595 62,282 32,313 17,864 1,811 17,132 1,754 in millions, except per share data Net sales Cost of sales Gross profit Operating expenses: Selling, general and administrative Depreciation and amortization Impairment loss Total operating expenses Operating income Interest and other (income) expense: Interest and investment income Interest expense Other Interest and other, net Earnings before provision for income taxes Provision for income taxes Net earnings 19,513 1,870 247 21,630 15,530 19,675 14,681 18,886 13,427 (74) (36) 972 1,057 (93) 1,051 16 974 14,556 3,435 11,121 983 13,698 5.068 936 12,491 4,534 7,957 8,630 Basic weighted average common shares Basic earnings per share 1,137 9.78 1,178 7-33 1,229 6.47 $ $ $ 1,143 9.73 1,184 7.29 1,234 6.45 $ $ $ Diluted weighted average common shares Diluted earnings per share Fiscal 2018 includes 53 weeks. Fiscal 2017 and fiscal 2016 include 52 weeks. See accompanying notes to consolidated financial statements. Page A-4