The Home Depot, Inc., is the leading retailer in the home improvement industry and ranks among the largest retailers in the United States. Some data from the company€™s financial statements for the years ended January 29, 2012, and February 3, 2008, follow ($ in millions):

1. Compute the Home Depot€™s EBIT-to-sales ratio for the years ended January 29, 2012, and February 3, 2008.
2. Compute the total asset turnover for the years ended January 29, 2012, and February 3, 2008.
3. Show how these two ratios determine the return on total assets.
4. Comment on the changes over the 4 years from 2008 to2012.

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2012 2008 Sales Earnings before interest and taxes Interest expense Provision for taxes Net income Property, plant, and equipment, net Average total assets Average stockholders' equity $70,395 $77,349 7,316 696 2,410 4,395 27,476 48,294 21,372 6,674 606 2,185 3,883 24,448 40,322 18,394