Compute ROE and RNOA with Disaggregation

Selected balance sheet and income statement information for Home Depot follows.

$ millionsJan. 31, 2016Feb. 01, 2015Operating assets$40,333$38,223Nonoperating assets2,2161,723Total assets42,54939,946Operating liabilities14,91813,427Nonoperating liabilities21,31517,197Total liabilities36,23330,624Total stockholders' equity6,3169,322Sales88,519Net operating profit before tax (NOPBT)11,774Nonoperting expense before tax753Tax expense4,012Net income7,009

Round all answers totwo 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.

NOPMAnswer

%

NOATAnswer

RNOAAnswer

%