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Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot follows. S millions Operating assets Nonoperating assets Total assets
Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot follows. S millions Operating assets Nonoperating assets Total assets Jan. 31, 2016 Feb. 01, 2015 $38,223 1,723 39,946 13,427 17,197 30,624 9,322 $40,333 2,216 42,549 14,918 21,315 36,233 6,316 88,519 11,774 753 4,012 7,009 Operating liabilities Nonoperating liabilities Total liabilities Total stockholders' equity Sales Net operating profit before tax (NOPBT) Nonoperting expense before tax ax expense Net income Round all answers to two decimal places (ex: 0.1 2345-1 2.35%) a. Compute return on equity 89.64 96 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. NOPM NOAT 3.53 RNOA
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