ACC - The Home Depot

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

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