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From the perspective of management, discuss how you think the investor ratios calculated will affect external stakeholders behavior. Ratios Liquidity Ratios The Home Depot Competitor

From the perspective of management, discuss how you think the investor ratios calculated will affect external stakeholders behavior.

Ratios
Liquidity Ratios The Home Depot Competitor Industry
Short-Term Debt Paying Ratios 2019 2020 2021
Working Capital 8850.00 8013.00 12042.00 392 1.17
Current Ratio 1.0781 1.2293 1.0130 1.02 1.6
Acid Test Ratio 0.2307 0.4700 0.2011 0.13 0.9
Cash Ratio 0.1161 0.3408 0.0817 0.07 0.14
Long-Term Solvency or Financial Leverage
Times Interested Earned 12.2523 12.6043 16.1373 10.12
Fixed Charge Coverage 1.6453 1.6060 1.7622 8.02 5.57
Debt Ratio 1.0608 0.9533 1.0235 1.11 0.53
Debt: Equity Ratio -10.1037 11.2877 -23.6356 -2.97
Asset Utilization or Turnover Ratios
Inventory turnover 4.9999 5.2479 4.5462 3.5 5.4
Days Sales in Inventory 73.0020 69.5515 80.2873 100 67
Receivables Turnover 54.5398 51.8282 47.1041 38.76 28.5
Days Sales in Receivables 6.6924 7.0425 7.7488 12.8
Operating Cycle 127.5418 121.3797 127.3913 69
Profitability Ratios
Net Profit Margin Ratio 0.1020 0.0974 0.1087 0.0877
Total Asset Turnover 2.3147 2.1690 2.1222 2.04 1.3
Return on Assets 0.2194 0.1823 0.2286 0.14 0.209
Operating Income Margin 0.1437 0.1384 0.1524 0.01256
Sales to Fixed Assets 3.8743 3.5934 2.3799 1.8
ROE -3.6078 3.9000 -9.6893 -0.81 0.789
Return on Common Equity -4.5022 140.61 20.5028 11.07 0.025
Gross Profit Margin 0.3409 0.3395 0.3363 0.3338
Investor Ratios
Degree of Financial Leverage 1.0889 1.0862 1.0661
Earnings per Share 10.3043 11.9461 15.5616 7.75 3.92
Diluted Earnings per Share 10.0375 11.8308 15.3867 3.21
Price/Earnings Ratio 20.7678 21.6932 23.0677 15.78 19.02
Percentage of Earnings Retained 4.6014 4.5184 4.1125
Dividend Payout 0.5337 0.5052 0.4260
Dividend Yield 0.1990 0.1632 0.1144 0.017

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