Question: 8.Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot follows. $ millions Jan. 31, 2016 Feb. 01, 2015
8.Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot follows.
| $ millions | Jan. 31, 2016 | Feb. 01, 2015 |
|---|---|---|
| Operating assets | $40,783 | $38,673 |
| Nonoperating assets | 2,291 | 1,798 |
| Total assets | 43,074 | 40,471 |
| Operating liabilities | 15,068 | 13,577 |
| Nonoperating liabilities | 21,270 | 17,152 |
| Total liabilities | 36,338 | 30,729 |
| Total stockholders' equity | 6,736 | 9,742 |
| Sales | 89,464 | |
| Net operating profit before tax (NOPBT) | 12,224 | |
| Nonoperting expense before tax | 828 | |
| Tax expense | 4,523 | |
| Net income | 6,873 |
Round answers to two decimal places (ex: 0.12345 = 12.35%)
a. Compute return on equity.____%?
b. Compute return on net operating assets (RNOA).____%?
c. Use ROE and RNOA to determine the nonoperating return for the year.____%?
d. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA. NOPM ____%? NOAT ____%? RNOA ____%?
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