In a recent year’s financial statements, Home Depot reported the following: Total liabilities = $38,633 million and Total assets = $42,966 million. Compute and interpret Home Depot’s debt ratio (assume competitors average a 60.0% debt ratio).

Managerial Accounting: The Cornerstone of Business Decision-Making
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Chapter15: Financial Statement Analysis
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In a recent year’s financial statements, Home Depot reported the following: Total liabilities = $38,633
million and Total assets = $42,966 million. Compute and interpret Home Depot’s debt ratio (assume competitors
average a 60.0% debt ratio).

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