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.