Reference no: EM132068936

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                        $40,333                     $38,223

Nonoperating assets                      2,216                       1,723

Total assets                                   42,549                     39,946

Operating liabilities                       14,918                     13,427

Nonoperating liabilities                 21,315                    17,197

Total liabilities                                36,233                  30,624

Total stockholders' equity                6,316                    9,322

Sales                                              88,519

(NOPBT)       11,774

Nonoperting expense before tax        753

Tax expense                                     4,012

Net income 7,009

Round all answers to two decimal places (ex: 0.12345 = 12.35%)

a. Compute return on equity.

b. Compute return on net operating assets (RNOA).

c. Use ROE and RNOA to determine the nonoperating return for the year.