Please Calculate the following ratios: Asset turnover Operating profit margin Lo
ID: 2810077 • Letter: P
Question
Please Calculate the following ratios:
Asset turnover
Operating profit margin
Long-term debt to equity ratio
Current ratio
The Home Depot, Inc. Income Statement
Please Calculate the following ratios:
Asset turnover
Operating profit margin
Long-term debt to equity ratio
Current ratio
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 7,009,000Explanation / Answer
Ratio Formula 2017 Asset Turnover* Sales/Average Total Assets 2.23 94595000/((42966000+41973000)/2) Operating Profit Margin Operating Profit/Sales 14.19% 13427000/94595000 Long Term debt to equity ratio Long term debt/Equity 5.16 22349000/4333000 Current Ratio Current Assets/current Liabilities 1.25 17724000/14133000 Alternatively, the asset turnover can also be calculate by dividing sales with total assets instead of average assets, since last year figures are given it is preferable to calculate average total assets