Problem - Ratio of Liabilities to Stockholders Equity

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Problem - Ratio of Liabilities to Stockholders Equity

The Home Depot, Inc., is the world's largest home improvement retailer and one of the largest retailers in the United States based on net sales volume. The Home Depot operates over 2,000 Home Depot® stores that sell a wide assortment of building materials and home improvement and lawn and garden products.

The Home Depot reported the following balance sheet data (in millions):

 

Feb. 1, 2009

Feb. 3, 2008

Total assets

$41,164

$44,324

Total stockholders' equity

17,777

17,714

Required -

a. Determine the total liabilities as of February 1, 2009, and February 3, 2008.

b. Determine the ratio of liabilities to stockholders' equity for 2009 and 2008. Round to two decimal places.

c. What conclusions regarding the margin of protection to the creditors can you draw from (b)?

Reference no: EM132679328

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