Compute ROE Selected balance sheet and income statement information for Home Dep

Question

Compute ROE Selected balance sheet and income statement information for Home Depot follows. Compute the re on equity for the year ended January 31, 2016. 8. Feb. 01, 2015 Jan. 31, 2016 $40,333 2,216 42,549 14,918 21,315 36,233 S millions $38,223 Operating assets Nonoperating assets 1,723 39,946 13,427 17,197 30,624 Nonoperating liabilities. . 6,316 9,322 88,519 11,774 Net operating profit before tax (NOPBT) Nonoperating expense before tax lax expense. 753 4,012 7,009 ply DuPont Disaggregation of ROE

Explanation / Answer

Return on Equity = Net Income / Average Equity

= 7009 / (6316+9322)/2

= 89.64%

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