Final answer:
The Home Depot's gross profit ratio measures the percentage of revenue exceeding the company's cost of goods sold and is calculated by dividing gross profit by net sales. The result, expressed as a percentage, indicates the efficiency of the company's cost management. Actual figures for any specific year require consulting Home Depot's annual or quarterly reports.
Step-by-step explanation:
The Home Depot's gross profit ratio is a financial metric that indicates the percentage of revenue that exceeds the cost of goods sold (COGS). This ratio is crucial as it reflects the efficiency with which a company uses its resources to generate sales and manage costs. To calculate the gross profit ratio, you need the company's gross profit and net sales. The formula is:
Gross Profit Ratio = (Gross Profit / Net Sales) × 100%
For example, if Home Depot's gross profit for a fiscal year is $30 billion and net sales are $110 billion, its gross profit ratio would be:
Gross Profit Ratio = ($30 billion / $110 billion) × 100% = 27.27%
To find the specific ratio for Home Depot in a given fiscal year, you would need their financial statements which are typically found in their annual report or quarterly filings with the Securities and Exchange Commission (SEC).