What are the 3 most important questions you would ask Home Depot management as a result of this analysis?

4.3 Home Depot, Inc. Financial Ratio Analysis FINANCIAL RATIOS HOME DEPOT LOWE'S 1. FIRM LIQUIDITY sent ratio current assets current liabilities 1.33 1.40 cash + accounts receivable current liabilities accounts receivable daily credit sales $13,479M $10,122M $545M + $1,085M $10,122M $1,085M - 0.16 0.12 16 days $20,399M + 365 - 1941 days Acid-test ratio Days in receivables Accounts receivable = turnover Days in inventory Inventory turnover annual credit sales accounts receivable 520,399M = 18.BOX 22.81X $1,085M 95.8 days - 86.77 days inventory daily cost of goods sold cost of goods sold inventory $10,625M $44,693M - 365 $44,693M $10,625M 3.81X = 4.21% 2. OPERATING PROFITABILITY Operating operating profits = $5,803M $40,125M - 14.5% 10.6% total assets return on assets Operating profit margin $5,803M operating profits sales 7.3% 8.50% $67,997M 1.69X 1.45X $67,997M $40,125M $20,399M $1,085M = 18.80X 22.81X Total asset sales turnover total assets Accounts annual credit sales receivable = accounts receivable turnover Inventory_cost of goods sold turnover inventory Fixed asset sales turnover net fixed assets $44,693M $10,625M = 4.21% 3.81X $67,997M $25,060M = 2.71X 2.21x 3. FINANCING DECISIONS $21,230M s 53% 46% Debt ratio = $40,125M total debt total assets operating profits interest $5,803M 10.9X Times interest earned 9.0x $530M 4. RETURN ON EQUITY 11.10% Return on equity = 17.7% $3,338M $18,889M net income total common equity