- Describe the type of business in which The Home Depot operates.
- Calculate the common-sized income statement and common-sized balance sheet for the last three financial years (2019, 2018, 2017). What has been the trends observing the common-sized income statement and common-sized balance sheet and whether this seems like a positive or negative trend.
THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF EARNINGS Fiscal 2019 110,225 $ 72,653 37,572 Fiscal 2018 108,203 $ 71,043 37,160 Fiscal 2017 100,904 66,548 34,356 19,740 1,989 17,864 1,811 in millions, except per share data Net sales Cost of sales Gross profit Operating expenses: Selling, general and administrative Depreciation and amortization Impairment loss Total operating expenses Operating income Interest and other (income) expense: Interest and investment income Interest expense Other Interest and other, net Earnings before provision for income taxes Provision for income taxes Net earnings 19,513 1,870 247 21,630 15,530 21,729 15,843 19,675 14,681 (73) 1,201 (74) 1,057 1,128 14,715 3,473 11,242 $ (93) 1,051 16 974 14,556 3,435 11,121 $ 983 13,698 5,068 8,630 $ Basic weighted average common shares Basic earnings per share 1,093 10.29 $ 1,137 9.78 $ 1,178 7.33 $ Diluted weighted average common shares Diluted earnings per share 1,097 10.25 $ 1,143 9.73 $ 1,184 7.29 $ Fiscal 2019 and fiscal 2017 include 52 weeks. Fiscal 2018 includes 53 weeks. See accompanying notes to consolidated financial statements. THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS February 2, 2020 February 3, 2019 $ in millions, except per share data Assets Current assets: Cash and cash equivalents Receivables, net Merchandise inventories Other current assets Total current assets Net property and equipment Operating lease right-of-use assets Goodwill Other assets Total assets 2,133 $ 2,106 14,531 1,040 19,810 22,770 5,595 2,254 807 51,236 $ 1,778 1,936 13,925 890 18,529 22,375 2,252 847 44,003 $ $ Liabilities and Stockholders' Equity Current liabilities: Short-term debt Accounts payable Accrued salaries and related expenses Sales taxes payable Deferred revenue Income taxes payable Current installments of long-term debt Current operating lease liabilities Other accrued expenses Total current liabilities Long-term debt, excluding current installments Long-term operat lease liabilities Deferred income taxes Other long-term liabilities Total liabilities 1,339 7,755 1,506 656 1,782 11 1,056 974 $ 7,787 1,494 605 2,116 55 1,839 828 2,677 18,375 28,670 5,066 706 1,535 54,352 2,611 16,716 26,807 491 1,867 45,881 THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS February 3, 2019 January 28, 2018 $ in millions, except per share data Assets Current assets: Cash and cash equivalents Receivables, net Merchandise inventories Other current assets Total current assets Net property and equipment Goodwill Other assets Total assets 1,778 $ 1,936 13,925 890 18,529 22,375 2,252 847 44,003 $ 3,595 1,952 12,748 638 18,933 22,075 2,275 1,246 44,529 $ $ Liabilities and Stockholders' Equity Current liabilities: Short-term debt Accounts payable Accrued salaries and related expenses Sales taxes payable Deferred revenue Income taxes payable Current installments of long-term debt Other accrued expenses Total current liabilities Long-term debt, excluding current installments Deferred income taxes Other long-term liabilities Total liabilities 1,339 $ 7,755 1,506 656 1,782 11 1,056 2,611 16,716 26,807 491 1,867 45,881 1,559 7,244 1,640 520 1,805 54 1,202 2,170 16,194 24,267 440 2,174 43,075 THE HOME DEPOT, INC. CONSOLIDATED BALANCE SHEETS January 28, 2018 January 29, 2017 in millions, except per share data Assets Current assets: Cash and cash equivalents Receivables, net Merchandise inventories Other current assets Total current assets Net property and equipment Goodwill Other assets Total assets $ 3,595 $ 2,538 1,952 2,029 12,748 12,549 638 608 18,933 17,724 22,075 21,914 2,275 2,093 1,246 1,235 $ 44,529 $ 42,966 $ Liabilities and Stockholders' Equity Current liabilities: Short-term debt Accounts payable Accrued salaries and related expenses Sales taxes payable Deferred revenue Income taxes payable Current installments of long-term debt Other accrued expenses Total current liabilities Long-term debt, excluding current installments Deferred income taxes Other long-term liabilities Total liabilities 1,559 $ 7,244 1,640 520 1,805 54 1,202 2,170 16,194 24,267 440 2,174 43,075 710 7,000 1,484 508 1,669 25 542 2,195 14,133 22,349 296 1,855 38,633
