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

Asset Turnover - Net sales / Total assets

2017 : 94,595,000/ 42,966,000 = 2.20x

2016 : 88,519,000/ 41,973,000 = 2.10x

Operating profit margin - Operating Earnings / Revenue

2017 : 13,427,000/ 94,595,000 = 14%

2016 : 11,774,000/ 88,519,000 = 13.3%

Long-term debt to equity ratio - Total debt / total equity

2017 : 22,349,000/ 4,333,000 = 5.15

2016 : 20,789,000/ 6,316,000 = 3.29

Current ratio : Current assets/ current liabilities

2017 : 17,724,000/ 14,133,000 = 1.25

2016 : 16,484,000/ 12,524,000 = 1.31

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