Refer to the financial statements and notes of the company you've selected to analyze. Research and answer the following:
Vertical_Horizonal Analysis
| Week 1 fill in the numbers-this tab only. Complete blue highlighted areas only. There are no calculations in week one. | ||||||
| The Home Depot | Vertical Analysis year 1 | Vertical Analysis Year 2 | Horizontal Analysis | |||
| Income Statement | 2011 | 2012 | 2013 | |||
| Net Revenue (net sales) | 70,395,000 | 74,754,000 | 78,812,000 | |||
| Cost of Goods | 51,422,000 | 48,912,000 | 46,133,000 | |||
| Gross Profit | 27,390,000 | 25,842,000 | 24,262,000 | |||
| Total Operating Expenses | 17,601 | 17,941 | 18,224 | |||
| Earnings from Operations | 6,661 | 7,901 | 9,166 | |||
| Interest Expense | 606000 | 632000 | 711000 | |||
| Net Earnings | 3,883,000 | 4,535,000 | 5,385,000 | |||
| Balance Sheet | ||||||
| Cash/cash equivalents (cash) | 1,987,000 | 2,494,000 | 1,929,000 | |||
| Short term investments | 0 | 0 | 0 | |||
| Net Accounts Receivable | 1,245,000 | 1,395,000 | 1,398,000 | |||
| Inventory | 10,325,000 | 10,710,000 | 11,057,000 | |||
| Current Assets | 14,520,000 | 15,372,000 | 15,279,000 | |||
| Net Fixed Assets | 24,448,000 | 24,069,000 | 23,348,000 | |||
| Total Assets | 40,518,000 | 41,084,000 | 40,518,000 | |||
| Current Liabilities | 9,376,000 | 11,462,000 | 10,749,000 | |||
| Long Term Liabilities | 10,758,000 | 9,475,000 | 14,691,000 | |||
| Total liabilities | 22,620,000 | 23,307,000 | 27,996,000 | |||
| Stockholders Equity | 17,898,000 | 17,777,000 | 12,522,000 | |||
| Total liabilities + Stockholders Equity | 40,518,000 | 41,084,000 | 40,518,000 | |||
| Prepared by: | ||||||
| Select numbers taken from financial statements | ||||||
| http:www.nasdaq.com/symbol/hd/financials?query=balancesheet | ||||||
| Optional Information | ||||||
| Any Preferred Stock | ||||||
| Dividends paid Common shareholder | ||||||
| Dividents paid to Preferred shareholder | ||||||
| Outstanding Shares Common Stock | ||||||
| Basic EPS (Earnings Per Share) | ||||||
| Auditing Firm | ||||||
Financial Ratios
| Table II | ||||||
| Company | Company* | Company* | Competition or Industry Ratio** | |||
| Formula | Year 1 | Year 2 | give the year here | |||
| Liquidity Ratios | 1. Complete the formula column. See example for gross profit percent. | |||||
| Current Ratio | 2. Use the numbers on the previous page to complete the ratios-Use Excel formulas. | |||||
| Acid Test Ratio | 3. One * means you did the calculations | |||||
| Two ** means you got the information from another source (cite that source) | ||||||
| Asset Management Ratio | 4. For column E choose a competitor or the Industry. | |||||
| Inventory Turnover | You do not need to calculate the competitor ratios, you can use pre-calculated ratios | |||||
| just remember to cite your source. (like a database) | ||||||
| Solvency Ratios | ||||||
| Debt ratio | ||||||
| Times Interest Earned Ratio | ||||||
| Profitability Ratios | ||||||
| Gross Profit Percent | Gross profit/net revenue | |||||
| Return on Net Sales | ||||||
| EPS** | ||||||
| Market Analysis | ||||||
| Price Earning Ratio** | ||||||
| Dividend Yield** | ||||||
| *Calculated by Author | ||||||
| ** Information from give souce | ||||||
| Prepared by |