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ACC - The Home Depot

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solution.-


Question

Using the accompanying financial statements (Excel Workbook), assess The Home Depot concerning profitability, liquidity, solvency, management efficiency, investment return, and stock features. For each area, you should calculate the ratios we discussed in class and provide a brief analysis of the ratios calculated. You do not need to perform vertical analysis for this assignment. I include historical stock price information below.

 

 

You do not need to look beyond the financial statements to complete this assignment.

 

 

Fiscal Year Ended 2/2/2014 2/3/2013 1/29/2012 1/30/2011

 

Adjusted Closing Price $75.97 $65.17 $42.52 $33.77

 

 

HOME DEPOT INC

 

$ in millions

 

As of 2/2/2014 2/3/2013 1/29/2012 1/30/2011

 

ASSETS

 

Current assets:

 

Cash and cash equivalents $1,929 $2,494 $1,987 $545

 

Accounts receivable, net 1,398 1,395 1,245 1,085

 

Merechandise inventories 11,057 10,710 10,325 10,625

 

Other current assets 895 773 963 1,224

 

Total Current Assets 15,279 15,372 14,520 13,479

 

Property & Equipment, at cost 39,064 38,491 38,975 38,385

 

Less Accumulated Depreciation and Amortization 15,716 14,422 14,527 13,325

 

Net Property & Equipment 23,348 24,069 24,448 25,060

 

Goodwill 1,289 1,170 1,120 1,187

 

Other assets 602 473 430 399

 

TOTAL ASSETS $40,518 $41,084 $40,518 $40,125

 

LIABILITIES AND SHAREHOLDERS EQUITY

 

Current liabilities:

 

Accounts payable $5,797 $5,376 $4,856 $4,717

 

Accrued salaries & related expenses 1,428 1,414 1,372 1,290

 

Sales taxes payable 396 472 391 368

 

Deferred revenue 1,337 1,270 1,147 1,177

 

Income taxes payable 12 22 23 13

 

Current installments of long-term debt 33 1,321 30 1,042

 

Other accrued expenses 1,746 1,587 1,557 1,515

 

Total current liabilities 10,749 11,462 9,376 10,122

 

Long-term debt, excluding current installments 14,691 9,475 10,758 8,707

 

Other long-term liabilities 2,042 2,051 2,146 2,135

 

Deferred income taxes 514 319 340 272

 

Total liabilities 27,996 23,307 22,620 21,236

 

Shareholders equity:

 

Common stock 88 88 87 86

 

Paid-in capital 8,402 7,948 6,966 6,556

 

Retained earnings 23,180 20,038 17,246 14,995

 

Accumulated other comprehensive income (loss) 46 397 293 445

 

Treasury stock, at cost (19,194) (10,694) (6,694) (3,193)

 

Total shareholders equity 12,522 17,777 17,898 18,889

 

TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $40,518 $41,084 $40,518 $40,125

 

Paper#81671 | Written in 11-Jan-2016

Price : $35
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