Use Home Depots financial information in Appendix A.Required:

1. 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.
2. Are they improving or declining?

See accompanying notes to consolidated financial statements. See accompanying notes to consolidated financial statements estimate for shrink occurring in the interim period between physical inventory counts is calculated on a store specific basis and is primarily based on recent shrink results. of the fiscal year using interim inventory loss experience in U.S. retail stores involved auditor judgment. - Evaluating the method and certain assumptions used; - Testing the application of the method and certain assumptions used; - Performing a current year trend analysis; and - Performing a sensitivity analysis over the shrink reserve estimate. /s/ KPMG LLP We have served as the Company's auditor since 1979. Atlanta, Georgia March 23, 2022 \begin{tabular}{|c|c|c|c|} \hline THEHOMEDEPOT,INCORPORATEDCONSOLIDATEDSTATEMENTSOFCASH & FLOWSFiscal2021 & Fiscal 2020 & Fiscal 2019 \\ \hline \multicolumn{4}{|l|}{ Cash Flows from Operating Activities: } \\ \hline Net earnings & $16,433 & $12,866 & $11,242 \\ \hline \multicolumn{4}{|l|}{Reconciliationofnetearningstonetcashprovidedbyoperatingactivities:} \\ \hline Depreciation and amortization & 2,862 & 2,519 & 2,296 \\ \hline Stock-based compensation expense & 399 & 310 & 251 \\ \hline Changes in receivables, net & (435) & (465) & (170) \\ \hline Changes in merchandise inventories & (5,403) & (1,657) & (593) \\ \hline Changes in other current assets & (330) & 43 & (135) \\ \hline Changes in accounts payable and accrued expenses & 2,401 & 5,118 & 32 \\ \hline Changes in deferred revenue & 775 & 702 & 334 \\ \hline Changes in income taxes payable & (51) & (149) & 44 \\ \hline Changes in deferred income taxes & (276) & (569) & 202 \\ \hline Other operating activities & 196 & 121 & 184 \\ \hline Net cash provided by operating activities & 16,571 & 18,839 & 13,687 \\ \hline \multicolumn{4}{|l|}{ Cash Flows from Investing Activities: } \\ \hline Capital expenditures & (2,566) & (2,463) & (2,678) \\ \hline Payments for businesses acquired, net & (421) & (7,780) & - \\ \hline Other investing activities & 18 & 73 & 25 \\ \hline Net cash used in investing activities & (2,969) & (10,170) & (2,653) \\ \hline \multicolumn{4}{|l|}{ Cash Flows from Financing Activities: } \\ \hline Proceeds from (repayments of) short-term debt, net & 1,035 & (974) & (365) \\ \hline Proceeds from long-term debt, net of discounts and premiums & 2,979 & 7,933 & 3,420 \\ \hline Repayments of long-term debt & (1,532) & (2,872) & (1,070) \\ \hline Repurchases of common stock & (14,809) & (791) & (6,965) \\ \hline Proceeds from sales of common stock & 337 & 326 & 280 \\ \hline Cash dividends & (6,985) & (6,451) & (5,958) \\ \hline Other financing activities & (145) & (154) & (140) \\ \hline Net cash used in financing activities & (19,120) & (2,983) & (10,798) \\ \hline Change in cash and cash equivalents & (5,518) & 5,686 & 236 \\ \hline Effect of exchange rate changes on cash and cash equivalents & (34) & 76 & 119 \\ \hline Cash and cash equivalents at beginning of year & 7,895 & 2,133 & 1,778 \\ \hline Cash and cash equivalents at end of year & $2,343 & $7,895 & $2,133 \\ \hline Supplemental Disclosu & & & \\ \hline Cash paid for income taxes & $5,504 & $4,654 & $3,220 \\ \hline Cash paid for interest, net of interest capitalized & 1,269 & 1,241 & 1,112 \\ \hline Non-cash capital expenditures & 421 & 274 & 136 \\ \hline \end{tabular} See accompanying notes to consolidated financial statements. Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors The Home Depot, Incorporated: Opinion on the Consolidated Financial Statements for each of the fiscal years in the three-year period ended January 30, 2022, in conformity with U.S. generally accepted accounting principles. opinion on the effectiveness of the Company's internal control over financial reporting. Basis for Opinion Exchange Commission and the PCAOB. a reasonable basis for our opinion. Critical Audit Matter matter or on the accounts or disclosures to which it relates. \begin{tabular}{|c|c|c|c|} \hline THEHOMEDEPOT,ICONSOLIDATEDSTATEMENTSOF & NCORPORATEDSTOCKHOLDERSEQUITYFisCal2021 & Fiscal 2020 & Fiscal 2019 \\ \hline \multicolumn{4}{|l|}{ Common Stock: } \\ \hline Balance at beginning of year & $89 & $89 & $89 \\ \hline Shares issued under employee stock plans & 1 & - & - \\ \hline Balance at end of year & 90 & 89 & 89 \\ \hline \multicolumn{4}{|l|}{ Paid-in Capital: } \\ \hline Balance at beginning of year & 11,540 & 11,001 & 10,578 \\ \hline Stock-based compensation expense & 398 & 310 & 251 \\ \hline Balance at end of year & 12,132 & 11,540 & 11,001 \\ \hline \multicolumn{4}{|l|}{ Retained Earnings: } \\ \hline Balance at beginning of year & 58,134 & 51,729 & 46,423 \\ \hline Cumulative effect of accounting changes & - & - & 26 \\ \hline Net earnings & 16,433 & 12,866 & 11,242 \\ \hline Cash dividends & (6,985) & (6,451) & (5,958) \\ \hline other & (2) & (10) & (4) \\ \hline \multicolumn{4}{|l|}{ Accumulated Other Comprehensive Loss: } \\ \hline Balance at beginning of year & (671) & (739) & (772) \\ \hline Cumulative effect of accounting changes & - & - & (31) \\ \hline Foreign currency translation adjustments, net of tax & (77) & 60 & 53 \\ \hline Cash flow hedges, net of tax & 9 & 8 & 8 \\ \hline other, net of tax & 35 & - & 3 \\ \hline Balance at end of year & (704) & (671) & (739) \\ \hline \multicolumn{4}{|l|}{ Treasury Stock: } \\ \hline Balance at beginning of year & (65,793) & (65,196) & (58,196) \\ \hline Repurchases of common stock & (15,001) & (597) & (7,000) \\ \hline Balance at end of year & (80,794) & (65,793) & (65,196) \\ \hline Total stockholders' (deficit) equity & $(1,696) & $3,299 & $(3,116) \\ \hline \end{tabular} See accompanying notes to consolidated financial statements. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|l|}{THEHOMEDEPOT,INCORPORATEDCONSOLIDATEDBALANCESHEETS} \\ \hline in millions, except per share data & January 30,2022 & January 31,2021 \\ \hline \multirow{2}{*}{\multicolumn{3}{|c|}{AssetsCurrentassets:}} \\ \hline & & \\ \hline Cash and cash equivalents & $2,343 & $7,895 \\ \hline Receivables, net & 3,426 & 2,992 \\ \hline Merchandise inventories & 22,068 & 16,627 \\ \hline Other current assets & 1,218 & 963 \\ \hline Total current assets & 29,055 & 28,477 \\ \hline Net property and equipment & 25,199 & 24,705 \\ \hline Operating lease right-of-use assets & 5,968 & 5,962 \\ \hline Goodwill & 7,449 & 7,126 \\ \hline Other assets & 4,205 & 4,311 \\ \hline Total assets & $71,876 & $70,581 \\ \hline LiabilitiesandStockholdersEquityCurrentliabilities: & & \\ \hline Short-term debt & $1,035 & $ \\ \hline Accounts payable & 13,462 & 11,606 \\ \hline Accrued salaries and related expenses & 2,426 & 2,463 \\ \hline Sales taxes payable & 848 & 774 \\ \hline Deferred revenue & 3,596 & 2,823 \\ \hline Income taxes payable & 158 & 193 \\ \hline Current installments of long-term debt & 2,447 & 1,416 \\ \hline Current operating lease liabilities & 830 & 828 \\ \hline Other accrued expenses & 3,891 & 3,063 \\ \hline Total current liabilities & 28,693 & 23,166 \\ \hline Long-term debt, excluding current installments & 36,604 & 35,822 \\ \hline Long-term operating lease liabilities & 5,353 & 5,356 \\ \hline Deferred income taxes & 909 & 1,131 \\ \hline Other long-term liabilities & 2,013 & 1,807 \\ \hline Total liabilities & 73,572 & 67,282 \\ \hline Commonstock,parvalue$0.05;authorized:10,000shares;issued:1,792sharesatJanuary30,2022and1,789sharesatJanuary31,2021;outstanding:1,035sharesatJanuary30, & & \\ \hline 2022 and 1,077 shares at January 31, 2021 & 90 & 89 \\ \hline Paid-in capital & 12,132 & 11,540 \\ \hline Retained earnings & 67,580 & 58,134 \\ \hline Accumulated other comprehensive loss & (704) & (671) \\ \hline Treasurystock,atcost,757sharesatJanuary30,2022and712sharesatJanuary31,2021 & (80,794) & (65,793) \\ \hline Total stockholders' (deficit) equity & (1,696) & 3,299 \\ \hline Total liabilities and stockholders' equity & $71,876 & $70,581 \\ \hline \end{tabular} See accompanying notes to consolidated financial statements