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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 Total

Apply DuPont Disaggregation of ROE Selected balance sheet and income statement information for Home Depot follows.

$ millions Jan. 31, 2016 Feb. 01, 2015
Total assets $43,179 $40,576
Total liabilities 36,413 30,804
Sales 89,599
Net income 7,013

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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