Financial Statement Ratio Analysis
Financial statement analysis of Home Depot
- Write a high level financial statement analysis that identifies two or three key accounts that bear further investigation. (i.e. Inventory, LTD, other assets)
- Identify which ratios (if not all the ratios) will be selected for the analysis. Each class must be presented as part of the case. The ratio analysis should show at least 3 periods in order to properly develop performance patterns. The use of charts, tables and graphs is encouraged to present the data for analysis.
- Within each class, a conclusion on overall context of the ratio analysis, there must be a logical integration of the significant accounts identified in the financial statement review to the selected ratios.
- Present an overall conclusion based solely on the overall financial performance presented on the relative strength of the company. Based on the financial performance of the company, as presented in the ratio analysis recommend to sell, hold or buy stock in the company.
Example outline:
- Financial statement (Balance sheet, Income Statement and Cash Flow statement) key account identification.
- Ratio analysis, by class: What each ratio tells us?
- Liquidity
- Current
- Quick
- Asset Management
- Days sales outstanding
- Inventory turnover
- Total assets turnover
- Debt Management
- Debt to assets ratio
- Times interest earned
- Profitability
- Profit margin on sales
- Return on total assets
- Return on common equity
- Market Value
- Price/Earnings
- Market/Book
- Liquidity
- Explain each ratio
- Conclusion with reason
-NYQ Follow
91.89 0.45(0.49%) 4:00PM EDT
|After Hours : 91.80 0.09 (0.10%) 7:06PM EDT
The Home Depot, Inc. (HD)
Top of Form
Bottom of Form
Income Statement
View: Annual Data | Quarterly Data
All numbers in thousands
Period Ending
Feb 2, 2014
Feb 3, 2013
Jan 29, 2012
Total Revenue
78,812,000
74,754,000
70,395,000
Cost of Revenue
51,422,000
48,912,000
46,133,000
Gross Profit
27,390,000
25,842,000
24,262,000
Operating Expenses
Research Development
–
–
–
Selling General and Administrative
16,597,000
16,508,000
16,028,000
Non Recurring
–
–
–
Others
1,627,000
1,568,000
1,573,000
Total Operating Expenses
–
–
–
Operating Income or Loss
9,166,000
7,766,000
6,661,000
Income from Continuing Operations
Total Other Income/Expenses Net
12,000
87,000
13,000
Earnings Before Interest And Taxes
9,178,000
7,853,000
6,674,000
Interest Expense
711,000
632,000
606,000
Income Before Tax
8,467,000
7,221,000
6,068,000
Income Tax Expense
3,082,000
2,686,000
2,185,000
Minority Interest
–
–
–
Net Income From Continuing Ops
5,385,000
4,535,000
3,883,000
Non-recurring Events
Discontinued Operations
–
–
–
Extraordinary Items
–
–
–
Effect Of Accounting Changes
–
–
–
Other Items
–
–
–
Net Income
5,385,000
4,535,000
3,883,000
Preferred Stock And Other Adjustments
–
–
–
Net Income Applicable To Common Shares
5,385,000
4,535,000
3,883,000
The Home Depot, Inc. (HD)
Top of Form
Bottom of Form
Balance Sheet
View: Annual Data | Quarterly Data
All numbers in thousands
Period Ending
Feb 2, 2014
Feb 3, 2013
Jan 29, 2012
Assets
Current Assets
Cash And Cash Equivalents
1,929,000
2,494,000
1,987,000
Short Term Investments
–
–
–
Net Receivables
1,398,000
1,395,000
1,245,000
Inventory
11,057,000
10,710,000
10,325,000
Other Current Assets
895,000
773,000
963,000
Total Current Assets
15,279,000
15,372,000
14,520,000
Long Term Investments
–
–
135,000
Property Plant and Equipment
23,348,000
24,069,000
24,448,000
Goodwill
1,289,000
1,170,000
1,120,000
Intangible Assets
–
–
–
Accumulated Amortization
–
–
–
Other Assets
602,000
473,000
295,000
Deferred Long Term Asset Charges
–
–
–
Total Assets
40,518,000
41,084,000
40,518,000
Liabilities
Current Liabilities
Accounts Payable
9,379,000
8,871,000
8,199,000
Short/Current Long Term Debt
33,000
1,321,000
30,000
Other Current Liabilities
1,337,000
1,270,000
1,147,000
Total Current Liabilities
10,749,000
11,462,000
9,376,000
Long Term Debt
14,691,000
9,475,000
10,758,000
Other Liabilities
2,042,000
2,051,000
2,146,000
Deferred Long Term Liability Charges
514,000
319,000
340,000
Minority Interest
–
–
–
Negative Goodwill
–
–
–
Total Liabilities
27,996,000
23,307,000
22,620,000
Stockholders’ Equity
Misc Stocks Options Warrants
–
–
–
Redeemable Preferred Stock
–
–
–
Preferred Stock
–
–
–
Common Stock
88,000
88,000
87,000
Retained Earnings
23,180,000
20,038,000
17,246,000
Treasury Stock
(19,194,000)
(10,694,000)
(6,694,000)
Capital Surplus
8,402,000
7,948,000
6,966,000
Other Stockholder Equity
46,000
397,000
293,000
Total Stockholder Equity
12,522,000
17,777,000
17,898,000
Net Tangible Assets
11,233,000
16,607,000
16,778,000
The Home Depot, Inc. (HD)
Top of Form
Bottom of Form
Cash Flow
View: Annual Data | Quarterly Data
All numbers in thousands
Period Ending
Feb 2, 2014
Feb 3, 2013
Jan 29, 2012
Net Income
5,385,000
4,535,000
3,883,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation
1,757,000
1,684,000
1,682,000
Adjustments To Net Income
228,000
315,000
215,000
Changes In Accounts Receivables
(15,000)
(143,000)
(170,000)
Changes In Liabilities
812,000
726,000
405,000
Changes In Inventories
(455,000)
(350,000)
256,000
Changes In Other Operating Activities
(84,000)
208,000
380,000
Total Cash Flow From Operating Activities
7,628,000
6,975,000
6,651,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures
(1,389,000)
(1,312,000)
(1,221,000)
Investments
–
–
–
Other Cash flows from Investing Activities
(118,000)
(120,000)
92,000
Total Cash Flows From Investing Activities
(1,507,000)
(1,432,000)
(1,129,000)
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid
(2,243,000)
(1,743,000)
(1,632,000)
Sale Purchase of Stock
(8,305,000)
(3,200,000)
(3,164,000)
Net Borrowings
3,933,000
(32,000)
966,000
Other Cash Flows from Financing Activities
(37,000)
(59,000)
(218,000)
Total Cash Flows From Financing Activities
(6,652,000)
(5,034,000)
(4,048,000)
Effect Of Exchange Rate Changes
(34,000)
(2,000)
(32,000)
Change In Cash and Cash Equivalents
(531,000)
509,000
1,474,000
