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Selected balance sheet and income statement information for Home Depot follows. Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for
Selected balance sheet and income statement information for Home Depot follows.
Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot follows. $ millions Operating assets Nonoperating assets Total assets Operating liabilities Nonoperating liabilities Total liabilities Total stockholders' equity Sales Net operating profit before tax (NOPBT) Nonoperting expense before tax Tax expense Net income Jan. 31, 2016 Feb. 01, 2015 $40,683 $38,573 2,266 1,773 42,949 40,346 15,043 13,552 21,275 17,157 36,318 30,709 6,631 9,637 89,234 12,124 803 4,001 7,320 Round answers to two decimal places (ex: 0.12345 = 12.35%) a. Compute return on equity. b. Compute return on net operating assets (RNOA). c. Use ROE and RNOA to determine the nonoperating return for the year. d. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA. NOPM NOAT RNOA CheckStep by Step Solution
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