Question
Selected balance sheet and income statement information for Home Depot follows. $ millions Jan. 31, 2016 Feb. 01, 2015 Operating assets $40,333 $38,223 Nonoperating assets
Selected balance sheet and income statement information for Home Depot follows.
$ millions | Jan. 31, 2016 | Feb. 01, 2015 |
---|---|---|
Operating assets | $40,333 | $38,223 |
Nonoperating assets | 2,216 | 1,723 |
Total assets | 42,549 | 39,946 |
Operating liabilities | 14,918 | 13,427 |
Nonoperating liabilities | 21,315 | 17,197 |
Total liabilities | 36,233 | 30,624 |
Total stockholders' equity | 6,316 | 9,322 |
Sales | 88,519 | |
Net operating profit before tax (NOPBT) | 11,774 | |
Nonoperting expense before tax | 753 | |
Tax expense | 4,012 | |
Net income | 7,009 |
Round answers to two decimal places (ex: 0.12345 = 12.35%)
a. Compute ROE and disaggregate the ratio into its DuPont components of ROA and financial leverage. ROE: Answer% ROA: Answer% Financial leverage: Answer
b. Disaggregate ROA in to profitability and productivity components. Profit margin Answer% Asset turnover Answer
Selected balance sheet and income statement information for Oracle Corporation follows. (Perform the required computations from the perspective of an Oracle shareholder.
$ millions | May 31, 2015 | May 31, 2014 |
---|---|---|
Operating assets | $56,535 | $51,447 |
Nonoperating assets | 54,368 | 38,819 |
Total assets | 110,903 | 90,266 |
Operating liabilities | 19,847 | 18,722 |
Nonoperating liabilities | 41,958 | 24,097 |
Total liabilities | 61,805 | 42,819 |
Total Oracle stockholders' equity | 48,663 | 46,878 |
Total revenues | 38,226 | |
Operating income before tax | 13,871 | |
Nonoperting expense before tax | 1,037 | |
Tax expense | 2,896 | |
Net income | 9,938 |
a. Compute return on equity (ROE) Round answer to two decimal places (ex: 0.12345 = 12.35%) ROE Answer% b. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage (FL). Rouand answers to two decimal places (percentage ex: 0.12345 = 12.35%) ROA Answer% FL Answer c. Calculate the profitability and productivity components of ROA. Rouand answers to two decimal places (percentage ex: 0.12345 = 12.35%) PM Answer% AT Answer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started