Please compute the following ratios using 237.65b market cap (if needed) Asset t

Question

Please compute the following ratios

using 237.65b market cap (if needed)

Asset turnover

Operating profit margin

Long-term debt to equity ratio

Current ratio

4,333,000

6,316,000

The Home Depot, Inc. Balance Sheet All numbers in thousands Period Ending 1/29/17 1/31/16 Current Assets Cash And Cash Equivalents 2,538,000 2,216,000 Short Term Investments - - Net Receivables 2,029,000 1,890,000 Inventory 12,549,000 11,809,000 Other Current Assets 608,000 569,000 Total Current Assets 17,724,000 16,484,000 Long Term Investments - - Property Plant and Equipment 21,914,000 22,191,000 Goodwill 2,093,000 2,102,000 Intangible Assets - - Accumulated Amortization - - Other Assets 1,235,000 1,196,000 Deferred Long Term Asset Charges - - Total Assets 42,966,000 41,973,000 Current Liabilities Accounts Payable 11,212,000 10,531,000 Short/Current Long Term Debt 1,252,000 427,000 Other Current Liabilities 1,669,000 1,566,000 Total Current Liabilities 14,133,000 12,524,000 Long Term Debt 22,349,000 20,789,000 Other Liabilities 1,855,000 1,965,000 Deferred Long Term Liability Charges 296,000 379,000 Minority Interest - - Negative Goodwill - - Total Liabilities 38,633,000 35,657,000 Stockholders' Equity Misc. Stocks Options Warrants - - Redeemable Preferred Stock - - Preferred Stock - - Common Stock 88,000 88,000 Retained Earnings 35,519,000 30,973,000 Treasury Stock -40,194,000 -33,194,000 Capital Surplus 9,787,000 9,347,000 Other Stockholder Equity -867,000 -898,000 Total Stockholder Equity

4,333,000

6,316,000

Explanation / Answer

All the calculations with formula has been provided in the table below:

Ratios Formula Calculation 2017 Calculation 2016 Note Asset Turnover Net Sales/Average Total Assets 94595000/[(42966000+41973000)/2] 2.23 NA NA Average total Assets = (Beginning Total Assets+Ending Total Assets)/2. Since for 2016, we do not have Beginning Total assets, the value cannot be calculated Asset Turnover Net Sales/Total Assets 94595000/42966000 2.20 88519000/41973000 2.11 Instead of Average Total assets, I have taken Total Assets to compute the ratio for both the years. However, it is advisable to calculate average total assets for the calculation Operating profit margin Net Operating Profit/Sales 13427000/94595000 14.19% 11774000/88519000 13.30% Long term debt to equity ratio Long term debt/Stockholder's equity 22349000/4333000 5.16 20789000/6316000 3.29 Current ratio Current Assets/Current Liabilities 17724000/14133000 1.25 16484000/12524000 1.32

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