Homework Answers
The return on assets ratio formula =. Net income / average total assets
In present case
It's :
$8 billion / $42 billion. = 19.05 %
Given that competitors average rate of return on total assets is 11 %
Return on total assets is a ratio that measures a company's earnings before interest and taxes relative to its total net assets.
The ratio is considered to be an indicator of how effectively a company is using its assets to generate earnings
As compared to others in same industry company is performing well aginst the others.
Company is able to generate sales and earn profit effectively by using their total assets.
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In a recent year's financial statements, Home Depot reported the following results. Compute and interpret...
9781259536 QS 1-15 Computing and interpreting return on assets LO A2 In a recent year's financial...
9781259536
QS 1-15 Computing and interpreting return on assets LO A2 In a recent year's financial statements, Home Depot reported the following results. Sales Net income Average total assets $83 billion 6 billion 40 billion Compute Home Depot's return on assets. (Enter the values in billions.) Choose Denominator Choose Numerator Net income Return on Assets Average total assets
Classify each of the following items as revenues (R), expenses 1. Cost of sales 4. Owner...
Classify each of the following items as revenues (R), expenses 1. Cost of sales 4. Owner withdraw 2. Service revenue 5. Rent expense 3. Wages expense 6. Rental revenue Classify each of the following items as assets (A), liabilities (L 1. Land 3. Equipment 2. Owner, Capital 4. Accounts payabl On December 31, Hawkin's records show the following ac December income statement for Hawkin. Classify each of the following items as assets (A), liabilities (L), or equity (EQ). 1. Land...
Refer to the financial statements of The Home Depot in Appendix A. (Note: Fiscal 2016 for...
Refer to the financial statements of The Home Depot in Appendix
A. (Note: Fiscal 2016 for The Home Depot runs from February 1,
2016, to January 29, 2017. As with many retail companies, The Home
Depot labels the period “Fiscal 2016” even though it ends in the
2017 calendar year. The label “Fiscal 2016” is appropriate because
Fiscal 2016 includes 11 months from the 2016 calendar year. The
Home Depot explains its choice of fiscal period in Note 1 to...
Balance sheets and income statements for the home depot inc. and lowe's companies inc . 1.Compute...
Balance sheets and income statements for the home depot inc. and
lowe's companies inc .
1.Compute return on equity, return on assets, and return on
financial leverage for each company in 2014
2. Disaggregate the ROA's computed into profit margin (PM) and
asset turnover (AT) components. Which of these factors drives ROA
for each company?
3. Compute the gross profit margin (GPM) and operating
expense-to-sales ratios for each company. How do these companies'
profitability measures compare?
4. Compute the accounts...
eBook Show Me How Calculator Print Item Asset Turnover The Home Depot reported the following data...
eBook Show Me How Calculator Print Item Asset Turnover The Home Depot reported the following data (in millions) in its recent financial statements: Year 2 Year 1 Sales $120,800 $127,650 Total assets at the end of the year 72,800 78,200 Total assets at the beginning of the year 78,200 92,000 a. Determine the asset turnover for The Home Depot for Year 2 and Year 1. Round to one decimal place. Year 2 Year 1 Ab. What do these turnover indicate...
An analysis of last year's financial statements produced the following results. 3.6 78.0 days Current ratio...
An analysis of last year's financial statements produced the following results. 3.6 78.0 days Current ratio Quick ratio Average collection period Inventory turnover Fixed asset turnover Operating profit margin Net profit margin Return on assets Return on equity Debt ratio Times-interest-earned Payout ratio 11.946 6.146 8.996 13.7% 35.5 9.3% 41.4% Use the following data to compute the comparable financial ratios for next fiscal year. Has the film's financial position changed Current assets Cash and short-term investments Accounts receivable Inventory Plant...
The Home Depot, Inc., financial statements appear in Appendix A at the end of this textbook. a. Identify where...
The Home Depot, Inc., financial statements appear in Appendix A at the end of this textbook. a. Identify where you can tell that the company uses straight-line depreciation. b. Which of the following statement is false? c. Using information from the consolidated financial statements, calculate the following for the year ended February 1, 2015: a) Net Income, b) Gross profit as a % of sales, c) Current ratio at February 1. 2015, d) Current ratio at the end of the...
Weafer Inc. reported the following results from last year's operations: $14,000,000 Sales Variable expenses 9,560,000 4,440,000...
Weafer Inc. reported the following results from last year's operations: $14,000,000 Sales Variable expenses 9,560,000 4,440,000 3,740,000 Contribution margin Fixed expenses 700,000 Net operating income $ 7,000,000 Average operating assets Last year's margin was closest to: Multiple Choice 5.0% 73.3% 31.7% 10.0% Robichau Inc. reported the following results from last year's operations: $6,300,000 Sales Variable expenses Contribution margin 4,930,000 1,370,000 803,000 Fixed expenses 567,000 Net operating income Average operating assets $3,000,000 At the beginning of this year, the company has...
Refer to the balance sheet information below for Home Depot. Compute RNOA with Disaggregation Refer to...
Refer to the balance sheet information below for Home Depot.
Compute RNOA with Disaggregation Refer to the balance sheet Information below for Home Depot. S millions Feb. 3. 2019 Jan 28, 2018 Operating assets $42.225 540,934 Nonoperating assets 1.778 3.595 Total assets $44003 $44,529 Operating liabilities 516,679 516,047 Nonoperating liabilities 29.202 27.028 Total abilities 545.881 $43.075 Net sales $100.203 Operating expense before tax 92.673 Net operating profit before tax (NOPBT) 15.530 Other expense 974 Income before tax 14.556 Tax expense...
Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot...
Compute ROE and RNOA with Disaggregation
Selected balance sheet and income statement information for Home
Depot follows.
Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot follows. $ millions Operating assets Nonoperating assets Total assets Operating liabilities Nonoperating liabilities Total liabilities Total stockholders' equity Sales Net operating profit before tax (NOPBT) Nonoperting expense before tax Tax expense Net income Jan. 31, 2016 Feb. 01, 2015 $40,683 $38,573 2,266 1,773 42,949 40,346 15,043 13,552...
9781259536
QS 1-15 Computing and interpreting return on assets LO A2 In a recent year's financial statements, Home Depot reported the following results. Sales Net income Average total assets $83 billion 6 billion 40 billion Compute Home Depot's return on assets. (Enter the values in billions.) Choose Denominator Choose Numerator Net income Return on Assets Average total assets
Classify each of the following items as revenues (R), expenses 1. Cost of sales 4. Owner withdraw 2. Service revenue 5. Rent expense 3. Wages expense 6. Rental revenue Classify each of the following items as assets (A), liabilities (L 1. Land 3. Equipment 2. Owner, Capital 4. Accounts payabl On December 31, Hawkin's records show the following ac December income statement for Hawkin. Classify each of the following items as assets (A), liabilities (L), or equity (EQ). 1. Land...
Refer to the financial statements of The Home Depot in Appendix
A. (Note: Fiscal 2016 for The Home Depot runs from February 1,
2016, to January 29, 2017. As with many retail companies, The Home
Depot labels the period “Fiscal 2016” even though it ends in the
2017 calendar year. The label “Fiscal 2016” is appropriate because
Fiscal 2016 includes 11 months from the 2016 calendar year. The
Home Depot explains its choice of fiscal period in Note 1 to...
Balance sheets and income statements for the home depot inc. and
lowe's companies inc .
1.Compute return on equity, return on assets, and return on
financial leverage for each company in 2014
2. Disaggregate the ROA's computed into profit margin (PM) and
asset turnover (AT) components. Which of these factors drives ROA
for each company?
3. Compute the gross profit margin (GPM) and operating
expense-to-sales ratios for each company. How do these companies'
profitability measures compare?
4. Compute the accounts...
eBook Show Me How Calculator Print Item Asset Turnover The Home Depot reported the following data (in millions) in its recent financial statements: Year 2 Year 1 Sales $120,800 $127,650 Total assets at the end of the year 72,800 78,200 Total assets at the beginning of the year 78,200 92,000 a. Determine the asset turnover for The Home Depot for Year 2 and Year 1. Round to one decimal place. Year 2 Year 1 Ab. What do these turnover indicate...
An analysis of last year's financial statements produced the following results. 3.6 78.0 days Current ratio Quick ratio Average collection period Inventory turnover Fixed asset turnover Operating profit margin Net profit margin Return on assets Return on equity Debt ratio Times-interest-earned Payout ratio 11.946 6.146 8.996 13.7% 35.5 9.3% 41.4% Use the following data to compute the comparable financial ratios for next fiscal year. Has the film's financial position changed Current assets Cash and short-term investments Accounts receivable Inventory Plant...
The Home Depot, Inc., financial statements appear in Appendix A at the end of this textbook. a. Identify where you can tell that the company uses straight-line depreciation. b. Which of the following statement is false? c. Using information from the consolidated financial statements, calculate the following for the year ended February 1, 2015: a) Net Income, b) Gross profit as a % of sales, c) Current ratio at February 1. 2015, d) Current ratio at the end of the...
Weafer Inc. reported the following results from last year's operations: $14,000,000 Sales Variable expenses 9,560,000 4,440,000 3,740,000 Contribution margin Fixed expenses 700,000 Net operating income $ 7,000,000 Average operating assets Last year's margin was closest to: Multiple Choice 5.0% 73.3% 31.7% 10.0% Robichau Inc. reported the following results from last year's operations: $6,300,000 Sales Variable expenses Contribution margin 4,930,000 1,370,000 803,000 Fixed expenses 567,000 Net operating income Average operating assets $3,000,000 At the beginning of this year, the company has...
Refer to the balance sheet information below for Home Depot.
Compute RNOA with Disaggregation Refer to the balance sheet Information below for Home Depot. S millions Feb. 3. 2019 Jan 28, 2018 Operating assets $42.225 540,934 Nonoperating assets 1.778 3.595 Total assets $44003 $44,529 Operating liabilities 516,679 516,047 Nonoperating liabilities 29.202 27.028 Total abilities 545.881 $43.075 Net sales $100.203 Operating expense before tax 92.673 Net operating profit before tax (NOPBT) 15.530 Other expense 974 Income before tax 14.556 Tax expense...
Compute ROE and RNOA with Disaggregation
Selected balance sheet and income statement information for Home
Depot follows.
Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot follows. $ millions Operating assets Nonoperating assets Total assets Operating liabilities Nonoperating liabilities Total liabilities Total stockholders' equity Sales Net operating profit before tax (NOPBT) Nonoperting expense before tax Tax expense Net income Jan. 31, 2016 Feb. 01, 2015 $40,683 $38,573 2,266 1,773 42,949 40,346 15,043 13,552...
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