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): Year 3 Year 2 Year 1 Total assets $42,549 $39,946 $40,518 Total liabilities 36,233 30,624 27,996 Total stockholders' equity 6,316 9,322 12,522 Compute the ratio of liabilities to stockholders' equity for all three years. Round to two dec- imal places. a. b. What conclusions regarding the margin of protection to creditors can you draw from the trend in this ratio for the 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): Year 3 Year 2 Year 1 Total assets $42,549 $39,946 $40,518 Total liabilities 36,233 30,624 27,996 Total stockholders' equity 6,316 9,322 12,522 Compute the ratio of liabilities to stockholders' equity for all three years. Round to two dec- imal places. a. b. What conclusions regarding the margin of protection to creditors can you draw from the trend in this ratio for the three years?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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