The Home Depot reported the following data (in millions) in its financial statements:

a. Determine the ratio of net sales to average total assets for The Home Depot for 2007 and 2006. Round to two decimal places.b. What conclusions can be drawn from these ratios concerning the trend in the ability of The Home Depot to effectively use its assets to generatesales?

Transcribed Image Text:

2007 2006 $90,837 52,263 44,482 Net sales $81,511 44,482 Total assets at the end of the year Total assets at the beginning of the year 38,907