Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home...
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Accounting
Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot follows.
$ millions
Jan. 31, 2016
Feb. 01, 2015
Operating assets
$40,783
$38,673
Nonoperating assets
2,291
1,798
Total assets
43,074
40,471
Operating liabilities
15,068
13,577
Nonoperating liabilities
21,270
17,152
Total liabilities
36,338
30,729
Total stockholders' equity
6,736
9,742
Sales
89,464
Net operating profit before tax (NOPBT)
12,224
Nonoperting expense before tax
828
Tax expense
4,523
Net income
6,873
Round answers to two decimal places (ex: 0.12345 = 12.35%)
a. Compute return on equity. Answer%
b. Compute return on net operating assets (RNOA). Answer%
c. Use ROE and RNOA to determine the nonoperating return for the year. Answer%
d. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA. NOPM Answer% NOAT Answer RNOA Answer%
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