Data table 2012 2008 $ 76,205 $ 8,879 83,159 9,521 610 810 1,675 Sales Earnings before interest and taxes Interest expense Provision for taxes Net income Property, plant, and equipment, net Average total assets Average stockholders' equity 1,995 6,795 6,579 26,856 28,569 44,984 37,012 18,569 18,369 Print Done The Tools Depot, Inc. is the leading retailer in the home improvement industry and ranks among the largest retailers in the United States. Some data from the company's financial statements for the years ended January 29, 2012, and February 3, 2008, follow ($ in millions): E: (Click the icon to view the data.) Requirements 1. Compute The Tools Depot's EBIT-to-sales ratio for the years ended January 29, 2012, and February 3, 2008. 2. Compute the total asset turnover for the years ended January 29, 2012, and February 3, 2008. 3. Show how these two ratios determine the return on total assets. 4. Comment on the changes over the 4 years from 2008 to 2012. Requirement 1. Compute The Tools Depot's EBIT-to-sales ratio for the years ended January 29, 2012, and February 3, 2008. Select the formula and then enter the amounts to calculate the EBIT-to-sales ratio. (Enter amounts in million of dollars. Round the percentage to the nearest tenth percent, X.X%.) EBIT-to-sales ratio 2008: % 2012: % Requirement 2. Compute the total asset turnover for the years ended January 29, 2012, and February 3, 2008. Select the formula and then enter the amounts to calculate the assets turnover. (Enter amounts in million of dollars. Round the ratio to two decimal places.) Asset turnover 2008: times 2012: times Requirement 3. Show how these two ratios determine the return on total assets. Select the formula and then enter the amounts to calculate the rate of return on total assets. (Enter dollar amounts in millions. Round percentages to the nearest tenth percent, X.X%.) 1 Return on assets 2008: % 2012: % Requirement 4. Comment on the changes over the 4 years from 2008 to 2012. Sales, EBIT and net income have all V over the four year period. The EBIT-to-sales ratio V. There has been an in the total asset turnover ratio. This has resulted in an in ROA. Note that average total assets over this interval. One way to think of this is that the entity is noticeably perhaps as a result of the recession, but it has improved the efficiency with which it utilizes its assets