Question

Please Calculate the following ratios: Asset turnover Operating profit margin Long-term debt to equity ratio Current ratio The Home Depot, Inc. Income Statement
All numbers in thousands
Revenue	1/29/17	1/31/16
Total Revenue	94,595,000	88,519,000
Cost of Revenue	62,282,000	58,254,000
Gross Profit	32,313,000	30,265,000
Operating Expenses
Research Development	-	-
Selling General and Administrative	17,132,000	16,801,000
Non Recurring	-	-
Others	1,754,000	1,690,000
Total Operating Expenses	-	-
Operating Income or Loss	13,427,000	11,774,000
Income from Continuing Operations
Total Other Income/Expenses Net	36,000	166,000
Earnings Before Interest and Taxes	13,463,000	11,940,000
Interest Expense	972,000	919,000
Income Before Tax	12,491,000	11,021,000
Income Tax Expense	4,534,000	4,012,000
Minority Interest	-	-
Net Income From Continuing Ops	7,957,000	7,009,000
Non-recurring Events
Discontinued Operations	-	-
Extraordinary Items	-	-
Effect Of Accounting Changes	-	-
Other Items	-	-
Net Income
Net Income	7,957,000	7,009,000
Preferred Stock And Other Adjustments	-	-
Net Income Applicable To Common Shares	7,957,000	7,009,000

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

Answer 1

Ratio		Formula				2017
Asset Turnover*		Sales/Average Total Assets				2.23
						94595000/((42966000+41973000)/2)
Operating Profit Margin		Operating Profit/Sales				14.19%
						13427000/94595000
Long Term debt to equity ratio		Long term debt/Equity				5.16
						22349000/4333000
Current Ratio		Current Assets/current Liabilities				1.25
						17724000/14133000
Alternatively, the asset turnover can also be calculate by dividing sales with total assets instead of average assets, since last year figures are given it is preferable to calculate average total assets

answered by: anonymous