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 Operating assets Nonoperating assets Total assets
Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot follows $ millions Operating assets Nonoperating assets Total assets Jan. 31, 2016 Feb. 01, 2015 $38,573 1,773 40,346 13,552 17,157 30,709 9,637 $40,683 2,266 42,949 15,043 21,275 36,318 6,631 89,234 12,124 803 4,001 7,320 Operating liabilities Nonoperating liabilities Total liabilities Total stockholders' equity Sales Net operating profit before tax (NOPBT) Nonoperting expense before tax Tax expense Net income Round answers to two decimal places (ex: 0.12345-12.35%) a. Compute return on equity 89.99 b. Compute return on net operating assets (RNOA). c. Use ROE and RNOA to determine the nonoperating return for the year d. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA. NOPM0 NOAT 0 RNOA
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