Compute the following ratios for The Home Depot’s year ended February 2, 2014: f

Question

Compute the following ratios for The Home Depot’s year ended February 2, 2014: fixed asset turnover, days to sell, and debt-to-assets. To calculate the ratios, use the financial statements of The Home Depot in Appendix A

http://lectures.mhhe.com/connect/0078025915/appendix_a.pdf

Compute the following ratios for The Home Depot’s year ended February 2, 2014: fixed asset turnover, days to sell, and debt-to-assets. To calculate the ratios, use the financial statements of The Home Depot in Appendix A

Explanation / Answer

fixed asset turnover = net sales / average fixed assets = 78812/((40518+41084)/2) = 1.93

days to sales = 365*average accounts receivable/sales = 365*((1398+1395)/2)/78812 = 6.47 days

debt-to-assets = total liabilities / assets = 27996/40518 = 0.69

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.