Compute the following three ratios for The Home Depots year ended January 29, 2017: (i) fixed asset turnover, (ii) days to sell, and (iii) debt-to-assets. To calculate the ratios, use the Fiscal 2016 financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. As with many retail companies, The Home Depot labels the period Fiscal 2016 even though it ends in the 2017 calendar year. The label Fiscal 2016 is appropriate because Fiscal 2016 includes 11 months from the 2016 calendar year. The Home Depot explains its choice of fiscal period in Note 1 to its financial statements.) (Use 365 days in a year. Round intermediate calculations to 2 decimal places. Round fixed asset turnover and debt-to-assets final ratios to 2 decimal places. Round days to sell ratio to 1 decimal place.)

• 2.37; 71.4; 0.90

• 2.37; 47.0; 0.52

• 4.29; 71.4; 0.90

• 4.29; 47.0; 0.90

• 

• 

January 29, 2017 "Fiscal 2016'" January 31, 2016 "Fiscal 2015" amounts in millions, except share and per share data ASSETS Current Assets $ 2,538 S 2,216 Cash and Cash Equivalents Receivables, net 2,029 1,890 Merchandise Inventories 12,549 11,809 Other Current Assets 608 569 16,484 Total Current Assets 17,724 Property and Equipment, at cost 40,426 39,266 Less Accumulated Depreciation and Amortization 18,512 17,075 22,191 Net Property and Equipment 21,914 Goodwill 2,093 2,102 Other Assets 1,235 1,196 $42,966 Total Assets S41,973 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: 710 Short-Term Debt S 350 Accounts Payable 7,000 6,565 Accrued Salaries and Related Expenses 1,484 1,515 Sales Taxes Payable 508 476 Deferred Revenue 1,669 1,566 Income Taxes Payable 25 34 Current Installments of Long-Term Debt 542 77 Other Accrued Expenses 2,195 1,941 12,524 Total Current Liabilities 14,133 Long-Term Debt, excluding current installments 22,349 20,789 Other Long-Term Liabilities 1,855 1,965 Deferred Income Taxes 296 379 Total Liabilities 38,633 35,657 STOCKHOLDERS' EQUITY Common Stock, par value S0.05; authorized: 10 billion shares; issued: 1.776 billion shares at January 29, 2017 and 1.772 billion shares at January 31, 2016; outstanding: 1.203 billion shares at January 29, 2017 and 1.252 billion shares at January 31, 2016 Paid-in Capital Retained Earnings 88 88 9,787 9.347 35,519 30,973 Accumulated Other Comprehensive Loss (867) (898) Treasury Stock, at cost, 573 million shares at January 29, 2017 and 520 million (40,194) (33,194) shares at January 31, 2016 Total Stockholders' Equity 4,333 6,316 Total Liabilities and Stockholders' Equity $42,966 S41,973 THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements of Earnings Fiscal Year Ended Jan. 29, 2017 Jan. 31, 2016 Feb. 1.2015 "Fiscal 2015" amounts in millions, except per share data "Fiscal 2016" "Fiscal 2014" $94,595 NET SALES S88,519 $83,176 Cost of Sales 62,282 58,254 54,787 32,313 28,389 GROSS PROFIT 30,265 Operating Expenses: Selling, General and Administrative 16,280 17,132 16,801 Depreciation and Amortization Total Operating Expenses 1,754 1,690 1,640 18,886 18,491 17,920 OPERATING INCOME 13,427 11,774 10,469 Interest and Other (Income) Expense: Interest and Investment Income (36) (166) (337) Interest Expense Interest and Other, net 972 919 830 936 753 493 11.021 EARNINGS BEFORE PROVISION FOR INCOME TAXES 12,491 9,976 4,534 3,631 Provision for Income Taxes 4,012 $ 7,957 S 7,009 NET EARNINGS 6,345 Weighted Average Common Shares 1,229 1,277 1,338 S 5.49 S6.47 BASIC EARNINGS PER SHARE S4.74 Diluted Weighted Average Common Shares 1,234 1,283 1,346 $ 6.45 S 5.46 S 4.71 DILUTED EARNINGS PER SHARE 1) Fiscal years ended January 29, 2017, January 31, 2016, and February 1, 2015 include 52 weeks See accompanying Notes to Consolidated Financial Statements THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income Fiscal Year Ended Jan. 31, 2016 "Fiscal 20155" mounts in millions Jan. 29, 2017 "Fiscal 2016" Feb. 1, 2015 "Fiscal 2014" Net Earnings $7,957 S6,345 $7,009 Other Comprehensive Income (Loss) Foreign Currency Translation Adjustments Cash Flow Hedges, net of tax (3) (412) (510) 34 (34) 11 Other Total Other Comprehensive Income (Loss) 31 (446) (498) $7,988 COMPREHENSIVE INCOME $6,563 $5,847 1) Fiscal years ended January 29, 2017, January 31, 2016, and February 1, 2015 include 52 weeks See accompanying Notes to Consolidated Financial Statements THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements of Stockholders' Equity Accumulated Other Treasury Stock Common Stock Stockholders Paid-In Retained Comprehensive Amount Capital Earnings Income (Loss) amounts in millions, except per share data Shares Shares Amount Equity $23,180 46 $(19,194) $12,522 Balance, February 2, 2014 1,761 $88 $8,402 (381) Net Earnings 6,345 6,345 Shares Issued Under Employee Stock Plans 122 122 Tax Effect of Stock-Based Compensation 136 136 Foreign Currency Translation Adjustments (510) (510) Cash Flow Hedges, net of tax 11 11 Stock Options, Awards and Amortization 225 225 of Restricted Stock Repurchases of Common Stock (80) (7,000) (7,000) Cash Dividends (S1.88 per share) (2,530) (2,530) Other $(26,194) 9,322 Balance, February 1, 2015 1,768 $88 $8,885 $26,995 S(452) (461) 7,009 Net Earnings 7,009 Shares Issued Under Employee Stock Plans 73 73 Tax Effect of Stock-Based Compensation 145 145 Forcign Currency Translation Adjustments (412) (412) Cash Flow Hedges, net of tax (34) (34) 244 Stock Options, Awards and Amortization 244 of Restricted Stock Repurchases of Common Stock Cash Dividends ($2.36 per share) (59) (7,000) (7,000) (3,031) (3,031) Balance, January 31, 2016 $30,973 $(33,194) 1,772 $88 $9,347 S(898) (520) 6,316 Net Earnings 7,957 7,957 Shares Issued Under Employee Stock Plans 4 76 76 Tax Effect of Stock-Based Compensation 97 97 Foreign Currency Translation Adjustments (3) (3) Cash Flow Hedges, net of tax 34 34 Stock Options, Awards and Amortization of Restricted Stock 267 267 Repurchases of Common Stock (53) (7,000) (7,000) Cash Dividends ($2.76 per share) (3,404) (3,404) Other (7) (7) $35,519 $(40,194) 4,333 Balance, January 29, 2017 1,776 $88 $9,787 S(867) (573) THE HOME DEPOT, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows Fiscal Year Ended Jan. 29, 2017 Jan. 31, 2016 Feb. 1, 2015 "Fiscal 2014 amounts in millions "Fiscal 2016" "Fiscal 2015" CASH FLOWS FROM OPERATING ACTIVITIES: Net Earnings $7,957 $7,009 S6,345 Reconciliation of Net Earnings to Net Cash Provided by Operating Activities: Depreciation and Amortization Stock-Based Compensation Expense Gain on Sales of Investments 1,973 1,863 1,786 267 244 225 (144) (323) Changes in Assets and Liabilities, net of the effects of acquisitions Receivables, net (138) (181) (81) Merchandise Inventories (769) (546) (124) Other Current Assets (48) (5) (199) Accounts Payable and Accrued Expenses 446 888 244 Deferred Revenue 99 109 146 Income Taxes Payable 109 154 168 Deferred Income Taxes (117) 15 159 Other 4 (33) (104) Net Cash Provided by Operating Activities 9,783 9,373 8,242 CASH FLOWS FROM INVESTING ACTIVITIES: (1,503 Capital Expenditures, net of $179, $i65 and $217 of non-cash capital expenditures in fiscal 2016, 2015 and 2014, respectively (1,621) (1,442) Proceeds from Sales of Investments 144 323 Payments for Businesses Acquired, net Proceeds from Sales of Property and Equipment Net Cash Used in Investing Activities (1,666) (200) 38 43 48 (1,583) (2,982) (1,271) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Short-Term Borrowings, net 360 60 290 Proceeds from Long-Term Borrowings, net of discounts 4,959 3,991 1,981 Repayments of Long-Term Deb Repurchases of Common Stock (3,045) (39) (39) (6,880) (7,000) (7,000) Proceeds from Sales of Common Stock 218 228 252 Cash Dividends Paid to Stockholders (3,404) (3,031) (2,530) Other Financing Activities 4 (78) (25) (7,870) Net Cash Used in Financing Activities (5,787) (7,071) 604 Change in Cash and Cash Equivalents 330 (100) Effect of Exchange Rate Changes on Cash and Cash Equivalents (8) (111) (106) Cash and Cash Equivalents at Beginning of Year 2,216 1,723 1,929 $2,538 Cash and Cash Equivalents at End of Year $2.216 $1,723 SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE FOR Interest, net of interest capitalized S 782 $924 S874 Income Taxes $4,623 $3,853 S3,435 i) Fircal years ended January 29, 2017, January 31, 2016, and February 1, 2015 inclade 52 weeks See accompanying Notes to Consolidated Financial Statements