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Compute NOPAT Selected income statement information for 2018 is presented below for Home Depot Inc. and Lowes Companies Inc. Assume the statutory tax rate is
Compute NOPAT
Selected income statement information for 2018 is presented below for Home Depot Inc. and Lowes Companies Inc. Assume the statutory tax rate is 22%.
| Pretax Net | Average Net | |||||
|---|---|---|---|---|---|---|
| Nonoperating | Tax | Operating | ||||
| Company ($ millions) | Ticker | Sales | NOPBT | Expense | Expense | Assets |
| Home Depot | HD | $65,787 | $9,442 | $592 | $2,088 | $15,332 |
| Lowes | LOW | 43,356 | 2,443 | 379 | 657 | 12,358 |
a. Compute the following measures for both companies.
1. NOPAT
| Company | NOPAT | |
|---|---|---|
| Home Depot | ||
| Lowe's |
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