Ratio of liablilities to stockholders equity


Problem:

The home depot is the the Worlds largest home improvement retaier and one of the largest retailes inthe US based on net sales volume. The home depot operates over 1,100 home depot stores that sell a wide assortment of building materials and home improvement and lawn and garden products.The home depot also operates over 25 EXpo Design center stores that offer interior design products. For years ending Feb 2, 2003 abd Feb 3, 2002, The home depot reported the following balance sheet data in millions

2003- total assets-30,011-stock owners equity-19,802

2002- totoal assets -26,394-stock owners equity-18,082

Q1. Determine the total liabilities as of Feb 2nd 2003 and Feb 3,2002

Q2. Determine the ratio of liablilities to stockholders equity for 2003 and 2002. Round in two decimal places.

Q3. What conclusions regardomg the margin of protection to the creditors can you draw from (2).

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Accounting Basics: Ratio of liablilities to stockholders equity
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