Using the financial information presented in Exhibit 13.1, calculate the following ratios for The Home Depot:

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Using the financial information presented in Exhibit 13.1, calculate the following ratios for The Home Depot:
• Return on equity
• Return on assets
• Total asset turnover
Inventory turnover
• Current ratio
• Quick ratio
• Cash coverage ratio
• Debt-to-equity ratio
Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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Financial Accounting

ISBN: 978-1259222139

9th edition

Authors: Robert Libby, Patricia Libby, Frank Hodge

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