Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot follows. $ millions Jan. 31, 2016 Feb. 01, 2015
Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot follows.
$ millions | Jan. 31, 2016 | Feb. 01, 2015 |
---|---|---|
Operating assets | $40,333 | $38,223 |
Nonoperating assets | 2,216 | 1,723 |
Total assets | 42,549 | 39,946 |
Operating liabilities | 14,918 | 13,427 |
Nonoperating liabilities | 21,315 | 17,197 |
Total liabilities | 36,233 | 30,624 |
Total stockholders' equity | 6,316 | 9,322 |
Sales | 88,519 | |
Net operating profit before tax (NOPBT) | 11,774 | |
Nonoperting expense before tax | 753 | |
Tax expense | 4,012 | |
Net income | 7,009 |
Round all answers to two decimal places (ex: 0.12345 = 12.35%)
a. Compute return on equity. Answer%
b. Compute return on net operating assets (RNOA). Answer%
c. Use ROE and RNOA to determine the nonoperating return for the year. Answer%
d. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA. NOPM Answer% NOAT Answer RNOA Answer%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started