Question: Compute ROE Selected balance sheet and income statement information for Home Depot follows. Compute the return on equity for the year ended January 31, 2016.

Compute ROE Selected balance sheet and income statement information for Home Depot follows. Compute the return on equity for the year ended January 31, 2016.

$ millions Jan. 31, 2016 Feb. 01, 2015 Operating assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,333 $38,223 Nonoperating assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,216 1,723 Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,549 39,946 Operating liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,918 13,427 Nonoperating liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,315 17,197 Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,233 30,624 Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,316 9,322 Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88,519 Net operating profit before tax (NOPBT) . . . . . . . . . . . . . . . . . . . . . . . . 11,774 Nonoperating expense before tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 753 Tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,012 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,009

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