Reference no: EM132514988

Selected balance sheet and income statement information for Home Depot follows.

$ millions                                  Jan. 31, 2016                       Feb. 01, 2015

Operating assets                      $40,583                           $38,473

Nonoperating assets                     2,241                               1,748

Total assets                                 42,824                                40,221

Operating liabilities                           15,018                               13,527

Nonoperating liabilities                            21,340                           17,222

Total liabilities                                        36,358                                 30,749

Total stockholders' equity                            6,466                              9,472

Sales                                                      88,944

Net operating profit before tax (NOPBT)         12,024

Nonoperting expense before tax                  778

Tax expense                                            4,208

Net income                                         7,038

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

Question a. Compute return on equity.

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

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

Question d. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA.