Calculate the gross profit ratio the inventory turnover


The table below contains selected information from recent financial statements of The Home Depot, Inc., and Lowe's Companies, Inc., two companies in the home improvement retail industry ($ in millions):

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Required:

Calculate the gross profit ratio, the inventory turnover ratio, and the average days in inventory for the two companies using the most recent fiscal year data. Compare your calculations for the two companies, taking into account the industry averages. 

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Accounting Basics: Calculate the gross profit ratio the inventory turnover
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