Ratio of net sales to assets
The Home Depot reported the following data (in millions) in its recent financial statements:
|
Year 2 |
Year 1 |
|
|
Net sales |
$67,997 |
$66,176 |
|
Total assets at the end of the year |
40,125 |
40,877 |
|
Total assets at the beginning of the year |
40,877 |
41,164 |
- Determine the ratio of net sales to assets for The Home Depot for Year 2 and Year 1.Round to two decimal places.
- What conclusions can be drawn from these ratios concerning the trend in the ability of The Home Depot to effectively use its assets to generate sales?