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