Compute the capital structure ratios.

Home Depot had

balances in Treasury stock in both years. When analyzing the company's capital structure, these amounts

The adjusted capital structure ratios indicate that Home Depot is primarily financed by Capital structure ratios

Coverage ratios

Liquidity ratios

Compute the coverage ratios.

$\backslash$table$[[$Coverage ratios,Numerator,Denominator,Result$],[$Times interest earned,,$,],[$Current year,$$,$$$,],[$Prior year,$$,$$$,],[$EBITDA coverage ratio,,$,],[$Current year,$$,$$$,],[$Prior year,$$,$$$,],[$Cash from operations to total debt,$,,],[$Current year,$$,$$$,],[$Prior year,$$,$$$,],[$Free operating cash flow to total debt,$,,],[$Current year,$$,$$$,],[$Prior year,$$,,]]$

Home Depot's coverage ratios were $$ in the prior year. Capital structure ratios

Coverage ratios

Liquidity ratios

Compute the liquidity ratios.

$\backslash$table$[[$Liquidity Ratios,Numerator,Denominator,Result$],[$Current ratio,,$*,],[$Current year,$$,$$$,],[$Prior year,$$,$$$,],[$Quick ratio,larr,$,],[$Current year,$$,,],[$Prior year,$$,,]]$

In the current year, how would Home Depot compare to a company with a current ratio of $\mathrm{.}98?$Compute and Interpret Liquidity, Solvency, and Coverage Ratios

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

$\backslash$table$[[$$ millions,Current Year,Prior Year$],[$Cash$,$$$2,757,$$$2,343],[$Accounts receivable,$3,317,3,426],[$Current assets,$32,471,29,055],[$Current liabilites,$23,110,28,693],[$Short$-$term debt,$-,1,035],[$Current installments of long$-$term debt,$1,231,2,447],[$Current operating lease liabilities,$945,830],[$Long$-$term debt, excluding current installments,$41,962,36,604],[$Long$-$term operating lease liabilities,$6,226,5,353],[$Total liabilities,$74,883,73,572],[$Treasury stock,$(87,298),(80,794)],[$Total stockholders' equity $($deficit$),1,562,(1,696)],[$Interest expense,$1,617,1,347],[$Earnings before interest and taxes $($EBIT$),24,039,23,040],[$Cash from operating activities $($Operating cash$),14,615,16,571],[$Depreciation and amortization,$2,975,2,862],[$Capital expenditures,$3,119,2,566]]$

Required

Compute the following ratios for both years:

$\backslash$table$[[$Capital Structure,Liquidity$],[$Ratios$,$Coverage Ratios,Ratios$],[$Liabilities$-$to$-$equity ratio,Times interest earned,Current ratio$],[$Total debt$-$to$-$equity ratio,EBITDA coverage ratio,Quick ratio$],[,$Cash from operations to total debt,$],[,$Free operating cash flow to total debt,$]]$