1. Using the Annual Report or Form 10-K of your company (Home Depot) found at www.sec.gov/edgar/searchedgar/companysearch.html (Links to an external site.), calculate the following financial ratios for 2 years (i.e Two current years) (show your work!):

• Liquidity ratios - Current, Quick and Cash
• Activity ratios - Days' Sales in Inventory, Days' Sales in Receivables and Total Asset Turnover
• Leverage ratios - Total Debt, Debt-Equity and Times Interest Earned
• Profitability ratios - Net Profit Margin, ROA and ROE
• Market Value ratios - Price-Earn, Price-Sales and Market-to-Book
  • Use stock price as of the date of your company's Financial Statements.
  • Use Diluted Weighted Average Shares Outstanding.

2. Find industry averages for your company (Home Depot) and include these in your analysis, i.e. Yahoo Finance.

3. Using the Current Ratio, Return on Equity & Price Earnings Ratio, summarize what they tell you about the company by making:

• Year over year comparisons
• Industry comparisons