calculate the Long term Solvency / Leverage for Canadian tire and Home Depot

The Debt-to-Equity (D/E) Ratio=Long term debt / shareholder's funds

Debt to equity ratio = total liabilities / shareholders' equity

Debt Ratio= Long Term Debt / Capital

Debt Ratio = Long Term Debt / Net Assets

Equity Ratio= Shareholder's funds / Capital or Shareholder's funds / Total Assets

Interest Coverage Ratio = EBIT / interest on long term debt

1. Canadian tire

S GROSS AVERAGE ACCOUNTS RECEIVABLE DIVIDENDS PER SHARE ($ millions) ($ per share) (Dividends $ per share) 4.8250 6,500 $20 4.5875 4 2500 6,250 518 6,000 $16 5,750 $14 5,500 $12 5,250 $10 5,000 58 St 4,750 4,500 2019 2020 2021 2019 2020* 2021 Normalized diluted EPS Dividends per share * 2020 results are based on a 53-week period. CANADIAN TIRE CORPORATION 2021 REPORT TO SHAREHOLDERS 5 MANAGEMENT'S DISCUSSION AND ANALYSIS 4.0 Financial Performance 4.1 Consolidated Financial Performance 4.1.1 Consolidated Financial Results (C$ in millions, except where noted) Q4 2021 Q4 2020 Change 2021 2020 Change Retail sales $ 5,661.0 $ 5,317.2 6.5 % $ 18,264.6 $ 16,864.4 8.3% Revenue $ 5,137.6 $ 4,874.5 5.4 % $ 16,292.1 $ 14,871.0 9.6 % Gross margin dollars $ 1,946.7 $ 1,849.9 5.2 % $ 5,835.2 $ 5,076.6 14.9 % Gross margin rate 37.9% 37.9% (6) bps 35.8 % 34.1 % 168 bps Other expense (income 5.2 $ 18.9 NM $ (23.5) S 48.7 NM Selling, general and administrative expenses 1.167.4 1.053.6 10.8% 3,934.3 3,599.3 9.3% Net finance costs 54.1 58.8 (8.1) % 222.5 256.5 (13.3)% Income before income taxes $ 720.0 $ 718.6 0.2 % $ 1,701.9 $ 1,172.1 45.2% Income tax expense 184.3 196.8 (6.4)% 441.2 309.5 42.6% Effective tax rate' 25.6% 27.4 % 25.9% 26.4 % Net income 535.7 $ 521.8 2.7 % $ 1,260.7 $ 862.6 46.1 % Net income attributable to: Shareholders of Canadian Tire Corporation S 508.5 $ 488.8 4.0 % $ 1,127.6 $ 751.8 50.0 % Non-controlling interests 27.2 33.0 (17.4)% 133.1 110.8 20.1 % $ 535.7 $ 521.8 2.7 % $ 1,260.7 $ 862. 46.1 % Basic EPS 8.40 $ 8.04 4.5 % $ 18.56 $ 12.35 50.3 % Diluted EPS 8.34 $ 7.97 4.6 % $ 18.38 S 12.31 49.3 % Weighted average number of Common and Class A Non-Voting Shares outstanding: Basic 60,553,762 60,807.577 NM 60,744,440 60,896,809 NM Diluted 61,008,556 61,358,623 NM 61,345,072 61,090,111 NM For further information about this measure s section 9.3 of this MD&A Not meaningful, Non-Controlling Interests The following table outlines the net income attributable to the Company's non-controlling interests. For additional details, refer to Note 15 to the Company's 2021 Consolidated Financial Statements (C$ in millions) Q4 2021 Q4 2020 2021 2020 Financial Services Non-controlling interest 20.0% (2020 - 20.0%) 9.0 $ 16.7 $ 62.7 $ 47.2 CT REIT Non-controlling interest 31.0% (2020 - 30,8%) 16.7 15.7 $6.6 62.4 Retail segment subsidiary Non-controlling interest 50.0% (2020 - 50.0%) 1.5 0.6 38 1.2 Net income attributable to non-controlling interests S 27.2 $ 33.0 $ 133.1 $ 110.8 6 CANADIAN TIRE CORPORATION 2021 REPORT TO SHAREHOLDERS MANAGEMENT'S DISCUSSION AND ANALYSIS36 Table of Contents THE HOME DEPOT, INC CONSOLIDATED BALANCE SHEETS January 30, January 31, in millions, except per share data 2022 2021 Assets Current assets: Cash and cash equivalents S 2.343 S 7.895 Receivables, net 3,426 2,992 Merchandise inventories 22,068 16,627 Other current assets 1,218 963 Total current assets 29.055 28,477 Net property and equipment 25,199 24,705 Operating lease right-of-use assets 5,968 5,962 Goodwill 7.449 7,126 Other assets 4,20 4,311 Total assets $ 71,876 70,581 Liabilities and Stockholders' Equity Current liabilities: Short-term debt $ 1,035 $ Accounts payable 13,462 11.606 Accrued salaries and related expenses 2.426 2.463 Sales taxes payable 848 774 Deferred revenue 3.596 2.823 Income taxes payable 158 193 Current installments of long-term debt 2.447 1,416 Current operating lease liabilities 830 828 Other accrued expenses 3,891 3,063 Total current liabilities 28,693 23,166 Long-term debt, excluding current installments 36,604 35,822 Long-term operating lease liabilities 5,353 5,356 Deferred income taxes 909 1,131 Other long-term liabilities 2.013 1,807 Total liabilities 73,572 67,282 Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,792 shares at January 30, 2022 and 1,789 shares at January 31, 2021; outstanding: 1,035 shares at January 30, 2022 and 1,077 shares at January 31, 2021 90 89 Paid-in capital 12.132 11,540 Retained earnings 67,580 58,134 Accumulated other comprehensive loss 704) (671) Treasury stock, at cost, 757 shares at January 30, 2022 and 712 shares at January 31, 2021 (80,794) (65,793) Total stockholders' (deficit) equity 1.696 3,299 Total liabilities and stockholders equity 71.876 S 70.581 See accompanying notes to consolidated financial statements. 37 Table of Contents THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF EARNINGS Fiscal Fiscal Fiscal In millions, except per share data 2021 2020 2019 Net sales S 151.157 $ 132.110 $ 110,225 Cost of sales 100,325 87.257 72.653 Gross profit 50.832 44.853 37.572 Operating expenses: Selling, general and administrative 25.406 24.447 19.740 Depreciation and amortization 2,386 2,128 1,989 Total operating expenses 27,792 26,575 21.729 Operating income 23,040 18,278 15,843 Interest and other (income) expense: Interest and investment income (44) (47) (73) Interest expense 1,347 1,347 1,201 Interest and other, net 1,303 1,300 128 Earnings before provision for income taxes 21,737 16,978 14.715 Provision for income taxes 5,304 4,112 3.473 Net earnings S 16.433 $ 12,866 $ 11,242 Basic weighted average common shares 1.054 1.074 1.093 Basic earnings per share 15.59 $ 11.98 $ 10.29 Diluted weighted average common shares 1.058 1,078 1.097 Diluted earnings per share S 15.53 $ 11.94 $ 10.25 See accompanying notes to consolidated financial statements