The Canada Improvement Financial Analysis

The Canada Improvement, one of the largest home improvement retailers globally, exhibited strong financial performance in fiscal year $2019,$ as evidenced by its comprehensive financial statements. Here, we analyze thecompany's financial health through the calculation of five key financial ratios: Profit Margin, Return on Assets $($ROA$),$ Return on Equity $($ROE$),$ Current Ratio, and Debt$-$to$-$Equity Ratio.

$1.$Profit Margin : $-$Formula: Net Income $/$ Net Sales$-$Calculation: $$11,242$ million $/$ $$110,225$ million $=10\mathrm{.}2\%$ Interpretation : The $10\mathrm{.}2\%$ profit margin indicates that The Home Depot retains approximately $10\mathrm{.}2$ cents in profit for every dollar of sales.

$2.$ Return on Assets $($ROA$)-$Formula Net Income $/$ Average Total Assets $-$Calculation: $$11,242$ million $/($ $$51,236$ million $+$ $$44,003$ million