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HOME DEPOT, INC. Selected Financial Information (amounts in millions, except per share amounts) begin{tabular}{llr|} hline & January 28, & February 29, & 2018 &
HOME DEPOT, INC. Selected Financial Information (amounts in millions, except per share amounts) \begin{tabular}{llr|} \hline & January 28, & February 29, \\ & 2018 & 2017 \\ Total current assets & $18,933 & $17,724 \\ Merchandise inventory & 12,748 & 12,549 \\ Property and equipment, net of depreciation & 22,075 & 21,914 \\ Total assets & 44,529 & 42,966 \\ Total current liabilities & 16,194 & 14,133 \\ Total long-term liabilities & 26,881 & 24,500 \\ Total liabilities & 43,075 & 38,633 \\ Total shareholders' equity & 1,454 & 4,333 \\ Revenue & 100,904 & 94,595 \\ Cost of goods sold & 66,548 & 62,282 \\ Gross profit & 34,356 & 32,313 \\ Operating income & 14,681 & 13,427 \\ Earnings from continuing operations before income tax expense & 13,698 & 12,491 \\ Income tax expense & 5,068 & 4,534 \\ Net earnings & 8,630 & 7,957 \\ \hline \end{tabular} a. Compute the following ratios for the companies' 2017 fiscal years (years ending in January and February of 2018): (1) Current ratio. (2) Average days to sell inventory. (Use average inventory.) (3) Debt-to-assets ratio. (4) Return on investment. (Use average assets and use "earnings from continuing operations" rather than "net earnings.") (5) Gross margin percentage. (6) Asset turnover. (Use average assets.) (7) Return on sales. (Use "earnings from continuing operations" rather than "net earnings.") (8) Plant assets to long-term debt ratio. b. Which company appears to be more profitable? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion. c. Which company appears to have the higher level of financial risk? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion. d. Which company appears to be charging higher prices for its goods? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion. e. Which company appears to be the more efficient at using its assets? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion
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