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The Home Depot, Inc., is the leading retailer in the home improvement industry and ranks among the largest retailers in the United States. Some data
The Home Depot, Inc., is the leading retailer in the home improvement industry and ranks among the largest retailers in the United States. Some data from the company's financial statements for the years ended January 29, 2012, and February 3, 2008, follow (S in millions) 2012 2008 Sales $70,395 $77,349 Earnings before interest and taxes 6,6747,316 Interest expense 606 696 Provision for taxes 2,185 2,410 Net income 3,8834,395 Property, plant, and equipment, net 24,448 27,476 Average total assets 40,322 48,294 Average stockholders' equity18,394 21,372 . Compute The Home Depot's EBIT-to-sales ratio for the years ended January 29, 2012, and February 3, 2008 2 Compute the total asset turnover for the years ended January 29, 2012, and February 3, 2008. 3. Show how these two ratios determine the return on total assets. 4. Comment on the changes over the 4 years from 2008 to 2012
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