Question

Please compute the following ratios

using $237.36B. market cap

Market value added

Market to book ratio

Return on Asset

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

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. Cash Flow
All numbers in thousands
Period Ending	1/29/17	1/31/16
Net Income	7,957,000	7,009,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation	1,973,000	1,863,000
Adjustments To Net Income	267,000	100,000
Changes In Accounts Receivables	-138,000	-181,000
Changes In Liabilities	654,000	1,151,000
Changes In Inventories	-769,000	-546,000
Changes In Other Operating Activities	-161,000	-23,000
Total Cash Flow From Operating Activities	9,783,000	9,373,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures	-1,621,000	-1,503,000
Investments	-	144,000
Other Cash flows from Investing Activities	38,000	-1,623,000
Total Cash Flows From Investing Activities	-1,583,000	-2,982,000
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid	-3,404,000	-3,031,000
Sale Purchase of Stock	-6,662,000	-6,772,000
Net Borrowings	2,274,000	4,012,000
Other Cash Flows from Financing Activities	-78,000	4,000
Total Cash Flows From Financing Activities	-7,870,000	-5,787,000
Effect Of Exchange Rate Changes	-8,000	-111,000
Change In Cash and Cash Equivalents	330,000	604,000

Answer 1

For Year 2017,

Market Cap = $237.36 B, Total Shareholder's Equity= $4,333,000,000 = $4.333 B

Market Value Added = Market Value - Total Capital Invested (Shareholder's Equity) = 237.36- 4.333 = $233.027 B

Market to Book ratio = Market Cap/ Total Book Value

Market Cap = $237.36 B, Book Value= Total Shareholder's Equity= $4,333,000,000 = $4.333 B

Market to Book ratio = 237.36/4.33 = 54.817

Return on Asset = Net Income/Total Assets

Net Income = $7,957,000,000 , Total Assets = $42,966,000,000

Return on Asset = 7957/42966 = 0.185