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Use Home Depot's financial information in Appendix A. Required: a. Compute the ROI and EVA for the two most recent years reported. Use Net Earnings
Use Home Depot's financial information in Appendix A. Required: a. Compute the ROI and EVA for the two most recent years reported. Use Net Earnings as a measure of earnings or returns and Net Property and Equipment as the invested capital base. Assume the weighted-average cost of capital is 10 percent. b. Are they improving or declining? Complete this question by entering your answers in the tabs below. Compute the ROI and EVA for the two most recent years reported. Use Net Earnings as a measure of earnings or returns and Net Property and Equipment as the invested capital base. Assume the weighted-average cost of capital is 10 percent. Note: Do not round intermediate calculations. Enter your answers in millions rounded to the nearest whole number (i.e. $12,500,000 should be considered as $13.). Round your percentage answers to 1 decimal place (i.e., 0.123 should be considered as 12.3.). in millions Net property and equipment - in the U.S. Net property and equipment - outside the U.S. Net property and equipment \begin{tabular}{crr} January 30, 2022 & January 31, 2021 & February 2, 2020 \\ \hline$22,696 & $22,205 & $20,302 \\ 2,503 & 2,500 & 2,468 \\ \hline$25,199 & $24,705 & $22,770 \\ \hline \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ dollars in millions } & \multicolumn{2}{|c|}{ Fiscal 2021} & \multicolumn{2}{|c|}{ Fiscal 2020} & \multicolumn{2}{|c|}{ Fiscal 2019} \\ \hline & Net Sales & % of Net Sales & Net Sales & % of Net Sales & Net Sales & % of Net Sales \\ \hline Net sales & $151,157 & & $132,110 & & $110,225 & \\ \hline Gross profit & 50,832 & 33.6% & 44,853 & 34.0% & 37,572 & 34.1% \\ \hline Operating expenses: & & & & & & \\ \hline Selling, general and administrative & 25,406 & 16.8 & 24,447 & 18.5 & 19,740 & 17.9 \\ \hline Depreciation and amortization & 2,386 & 1.6 & 2,128 & 1.6 & 1,989 & 1.8 \\ \hline Total operating expenses & 27,792 & 18.4 & 26,575 & 20.1 & 21,729 & 19.7 \\ \hline Operating income & 23,040 & 15.2 & 18,278 & 13.8 & 15,843 & 14.4 \\ \hline Interest and other (income) expense: & & & & & & \\ \hline Interest and investment income & (44) & & (47) & 0 & (73) & (0.1) \\ \hline Interest expense & 1,347 & 0.9 & 1,347 & 1.0 & 1,201 & 1.1 \\ \hline Interest and other, net & 1,303 & 0.9 & 1,300 & 1.0 & 1,128 & 1.0 \\ \hline Earnings before provision for income taxes & 21,737 & 14.4 & 16,978 & 12.9 & 14,715 & 13.3 \\ \hline Provision for income taxes & 5,304 & 3.5 & 4,112 & 3.1 & 3,473 & 3.2 \\ \hline Net earnings & $16,433 & 10.9% & $12,866 & 9.7% & $11,242 & 10.2% \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline THEHOMEDEPOT,INCORPOCONSOLIDATEDSTATEMENTSOFinmillions,exceptpersharedata & EATEDEARNINGSFiscal2021 & Fiscal 2020 & Fiscal 2019 \\ \hline Net sales & $151,157 & $132,110 & $110,225 \\ \hline Cost of sales & 100,325 & 87,257 & 72,653 \\ \hline Gross profit & 50,832 & 44,853 & 37,572 \\ \hline Operating expenses: & & & \\ \hline Selling, general and administrative & 25,406 & 24,447 & 19,740 \\ \hline Depreciation and amortization & 2,386 & 2,128 & 1,989 \\ \hline Total operating expenses & 27,792 & 26,575 & 21,729 \\ \hline Operating income & 23,040 & 18,278 & 15,843 \\ \hline Interest and other (income) expense: & & & \\ \hline Interest and investment income & (44) & (47) & (73) \\ \hline Interest expense & 1,347 & 1,347 & 1,201 \\ \hline Interest and other, net & 1,303 & 1,300 & 1,128 \\ \hline Earnings before provision for income taxes & 21,737 & 16,978 & 14,715 \\ \hline Provision for income taxes & 5,304 & 4,112 & 3,473 \\ \hline Net earnings & $16,433 & $12,866 & $11,242 \\ \hline Basic weighted average common shares & 1,054 & 1,074 & 1,093 \\ \hline Basic earnings per share & $15.59 & $11.98 & $10.29 \\ \hline Diluted weighted average common shares & 1,058 & 1,078 & 1,097 \\ \hline Diluted earnings per share & $15.53 & $11.94 & $10.25 \\ \hline \end{tabular}
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