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Apply DuPont Disaggregation of ROE Selected balance sheet and income statement information for Home Depot follows. $ millions Jan. 31, 2016 Feb. 01, 2015 Operating
Apply DuPont Disaggregation of ROE Selected balance sheet and income statement information for Home Depot follows.
$ millions | Jan. 31, 2016 | Feb. 01, 2015 |
---|---|---|
Operating assets | $40,683 | $38,573 |
Nonoperating assets | 2,266 | 1,773 |
Total assets | 42,949 | 40,346 |
Operating liabilities | 15,043 | 13,552 |
Nonoperating liabilities | 21,275 | 17,157 |
Total liabilities | 36,318 | 30,709 |
Total stockholders' equity | 6,631 | 9,637 |
Sales | 89,234 | |
Net operating profit before tax (NOPBT) | 12,124 | |
Nonoperting expense before tax | 803 | |
Tax expense | 4,001 | |
Net income | 7,320 |
Round answers to two decimal places (ex: 0.12345 = 12.35%)
a. Compute ROE and disaggregate the ratio into its DuPont components of ROA and financial leverage. ROE: Answer
% ROA: Answer% Financial leverage: Answer
b. Disaggregate ROA in to profitability and productivity components. Profit margin Answer
% Asset turnover Answer
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