Analyze The Home Depot for three years The Home Depot, Inc. (HD), is the world’s largest home improvement retailer and one of the largest retailers in the United States based on sales volume. Home Depot operates over 2,200 stores that sell a wide assortment of building, home improvement, and lawn and garden items. Home Depot recently reported the following end-of-year balance sheet data (in millions): a. Compute the ratio of liabilities to stockholders’ equity for all three years. Round to two decimal places. b. What conclusions regarding the margin of protection to creditors can you draw from the trend in this ratio for the three years?

BuyFind

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663
BuyFind

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663

Solutions

Chapter 1, Problem 2MAD
Textbook Problem

Analyze The Home Depot for three years

The Home Depot, Inc. (HD), is the world’s largest home improvement retailer and one of the largest retailers in the United States based on sales volume. Home Depot operates over 2,200 stores that sell a wide assortment of building, home improvement, and lawn and garden items.

Home Depot recently reported the following end-of-year balance sheet data (in millions):

Chapter 1, Problem 2MAD, Analyze The Home Depot for three years The Home Depot, Inc. (HD), is the worlds largest home

  1. a. Compute the ratio of liabilities to stockholders’ equity for all three years. Round to two decimal places.
  2. b. What conclusions regarding the margin of protection to creditors can you draw from the trend in this ratio for the three years?

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Chapter 1 Solutions

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